- US Dollar Index recovers modestly in the NA session.
- Upbeat data and Fed commentary support the greenback.
- Germany's Bundesbank confirms slowdown in economic growth.
After spending the majority of the day moving sideways in a narrow band above the 1.13 handle, the EUR/USD pair came under modest bearish pressure in the last hour and was last seen trading at 1.1302, where it was virtually unchanged on a daily basis.
Earlier today, Germany's Bundesbank in its monthly report said that the economy grew "moderately" in the first quarter and reiterated that the underlying growth trend remained subdued in that period. Meanwhile, in an interview with the French daily, Le Figaro, European Central Bank (ECB) Governing Council member and Bank of France Head Villeroy de Galhau echoed President Draghi's remarks from the last ECB meeting by saying that the monetary policy must remain accommodative.
Nevertheless, the shared currency didn't have a hard time staying resilient against the dollar as the upbeat market sentiment didn't allow the greenback to gather strength. European Union (EU) Trade Commissioner Cecilia Malmstrom today announced that the EU was ready to move on the next phase of trade talks with the U.S.
On the other hand, today's data from the U.S. revealed that the NY Fed's Empire State Manufacturing Index rose to 10.1 in April from 3.7 in March to help the US Dollar Index start recovering its daily losses. Moreover, in an interview with CNBC, Chicago Fed President Evans said that the U.S. economy was looking stronger than it did in December. "I'm looking for 1.75%-2.00% growth this year," Evans added. At the moment, the DXY is up 0.1% on the day at 96.95, forcing the pair to stay near its daily lows.
Technical outlook by FXStreet Chief Analyst Valeria Bednarik
In the 4 hours chart, technical indicators have lost upward strength but hold within positive ground, while the price holds above all of its moving averages, with the 20 SMA heading north above the 100 SMA and about to surpass the 200 SMA, all of them below the current level. Above the daily high, the pair has room to extend its advance up to the 1.1350 price zone, the 61.8% retracement of the mentioned decline.
Support levels: 1.1285 1.1245 1.1200
Resistance levels: 1.1320 1.1350 1.1385
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.