- EUR/USD alternates gains with losses around the 1.1200 handle.
- The greenback appears sidelined in the 97.50/60 band.
- ECB’s B.Coeure due to speak later in the day.
The sentiment around the shared currency stays mixed early in the European session, with EUR/USD orbiting without clear direction around the 1.1200 handle.
EUR/USD steady near 1.1200 post EU elections
The selling pressure around the single currency looks alleviated at the beginning of the week, helped by the results from the EU parliamentary elections, where the populist/Eurosceptic option lost some traction. However, it is worth noting Marine Le Pen’s RN victory vs. President Emmanuel Macron’s REM.
On another direction, US-China trade dispute remains the key catalyst for the price action around the global markets, all despite the lack of further/significant news in past days.
There are no scheduled publications in the euro docket today, although ECB’s B.Coeure will speak at a BIS event in Basel.
What to look for around EUR
Recent data releases in Euroland and Germany have poured cold water over the idea that some healing process could be underway in the region, re-shifting the focus to the ongoing slowdown and its probable duration and extension. This view has been reinforced in recent ECB minutes, where the Council appeared unconvinced about a pick up in the economic activity in the medium term horizon. That said, the current ‘neutral/dovish’ stance from the ECB is expected to persist for the remainder of the year and probable through H1 2020. The broad-based risk-appetite trends and USD-dynamics should dictate the sentiment surrounding the European currency for the time being, all in combination with the now stalled US-China negotiations and potential US tariffs on EU products. On the political front, Italian politics has re-emerged as a source of uncertainty and volatility with the main focus of attention on its fiscal struggle vs. Brussels.
EUR/USD levels to watch
At the moment, the pair is gaining 0.02% at 1.1205 and a breakout of 1.1215 (high May 27) would target 1.1235 (55-day SMA) en route to 1.1264 (monthly high May 1). On the flip side, immediate support lines up at 1.1191 (21-day SMA) seconded by 1.1107 (2019 low May 23) and finally 1.0905 (high Mar.27 2017).
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.
Latest Forex News
Editors’ Picks
EUR/USD pressured toward 1.17 on Evergrande crisis
EUR/USD is extending its losses, falling toward 1.17. The safe-haven dollar is in demand as the crisis around China's Evergrande deepens and a global slowdown is feared. Tensions toward the Fed decision and also Germany's elections are taking their toll too.
GBP/USD tumbles under 1.37, succumbing to dollar strength
GBP/USD is trading under 1.37, suffering from robust dollar demand. The financial woes of China's Evergrande threaten a drop in global demand. Soaring energy prices are also weighing on sentiment. The Fed and the BOE are eyed later this week.
Gold bears tease five-week low near $1,750, China, Fed eyed
Gold bears regain controls ahead of the key weekly events, down 0.36% intraday near $1,748 heading into Monday’s European session.
Cardano introduces Layer 2 solution Hydra, as ADA price looks to rally 25%
Cardano price is grappling with a crucial support floor on the daily time frame as the big crypto experienced a minor crash. Investors can expect ADA to slice through this barrier before restarting its uptrend.
Canadian Federal Elections: Not a very crucial vote
Markets are taking a hands-off approach to Monday’s Canadian Federal election between Prime Minister Justin Trudeau's Liberals and Erin O'Toole's Conservatives.