EUR/USD tumbles to lows near 1.1280 on ECB, ZEW


  • The pair comes under selling pressure and breaches 1.1300.
  • ECB members doubtful of rebound in H2 2019.
  • EMU Economic Sentiment rebounds in April.

A wave of selling orders has hit the single currency and forced EUR/USD to drop to fresh 2-day lows in the 1.1280 region.

EUR/USD weaker on ECB comments

Spot came under heavy downside pressure today after ECB members casted doubts over the potential rebound in the economic activity in Euroland in the second half of the year.

These comments eclipsed the positive results from the ZEW survey, showing that the Economic Sentiment in Germany and the broader euro bloc improved to 3.1 and 4.5, respectively for the current month. Further data saw Current Conditions at 5.5, missing expectations and down from March’s 11.1.

Moving forward, ECB’s Board member E.Nowotny is due to speak later in the day. In the US docket, Industrial Production, Manufacturing Production, Capacity Utilization and the NAHB index are all due later in the NA session.

What to look for around EUR

Positive sentiment in the risk-associated complex continues to support the shared currency amidst the lack of upside traction in the buck. The ECB reiterated the risks to the economic outlook in the region remains tilted to the downside, a view reinforced by poor results from fundamentals in past weeks. That said, the ‘patient-for-longer’ stance from the ECB could be among us for longer than expected. Against this backdrop, the neutral stance from the Fed and occasional deterioration in the risk-on mood should lend support to the buck and thus limit the upside in spot. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections and the swelling presence of the populist movement among the voting countries.

EUR/USD levels to watch

At the moment, the pair is losing 0.13% at 1.1289 and faces initial contention at 1.1273 (21-day SMA) seconded by 1.1183 (low Apr.2) and finally 1.1176 (low Mar.7). On the flip side, a breakout of 1.1337 (200-week SMA) would target 1.1345 (100-day SMA) en route to 1.1419 (high Feb.14).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD retreats after strong NFP, weak German data

EUR/USD is trading below   1.11 after US Non-Farm Payrolls beat expectations with 266K and mixed wage growth. Earlier, weak German data weighed on the euro. Updates on trade are awaited.

EUR/USD News

GBP/USD shrugs off strong NFP, focuses on UK elections

GBP/USD is trading below 1.3150 but off the post-NFP lows. The US gained more jobs than expected. The Conservatives remain in the lead ahead of the debate between PM Johnson and Labour leader Corbyn.

GBP/USD News

US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP

Recent US economic indicators have been downbeat, but they include silver linings and are backed by robust consumption. Valeria Bednarik, Joseph Trevisani, and Yohay Elam...

Read more

Gold drops to fresh multi-day lows on upbeat NFP report

Gold faded an intraday bullish spike to the $1480 area and tumbled to fresh multi-day lows, around the $1465 region in reaction to upbeat US monthly jobs report.

Gold News

USD/JPY: bearish ahead of US employment figures

Japanese data missed the market’s expectations, triggering fresh concerns about the economy. Focus on US employment figures, market players anticipate dismal numbers. USD/JPY is technically bearish could break below the 108.00 level.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures