EUR/USD under pressure, drops to lows near 1.1260 ahead of US data

  • EUR/USD tumbles to weekly lows near 1.1260.
  • DXY looks to extend the move beyond the 97.00 mark.
  • Retail Sales, U-Mich index next on tap in the US calendar.

Further selling pressure is now weighing on the shared currency and dragging EUR/USD to new weekly lows in the 1.1260 zone.

EUR/USD focused on data, Italy

The pair is down for the third consecutive session so far today following the rejection from tops in the mid-1.1300s recorded in past days.

Today’s poor prints from Italian inflation figures during last month and April’s Industrial Sales and Industrial New Orders have weighed further on EUR, already hurt by the ongoing conflict between Rome and Brussels over EU fiscal rules.

The correction lower in spot follows heightened trade concerns on the US-China trade front along with a pick up in geopolitical effervescence in the Middle East in the wake of the attack to oil tankers in the Gulf of Oman.

Later in the day, US Retail Sales should grab all the looks seconded by advanced Consumer Sentiment and Industrial and Manufacturing Production figures.

What to look for around EUR

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 developments from the trade front including the US, China, the EU and Mexico. On the political front, Italian politics is expected to remain a source of uncertainty and volatility, with the centre of the debate on the country’s opposition to EU fiscal rules. EUR, however, is expected to remain under scrutiny amidst the renewed dovish stance from the ECB and the ongoing slowdown in the region.

EUR/USD levels to watch

At the moment, the pair is retreating 0.09% at 1.1266 and faces the initial support at 1.1260 (low Jun.14) followed by 1.1219 (55-day SMA) and finally 1.1200 (low Jun.6). On the upside, a break above 1.1347 (high Jun.7) would target 1.1360 (200-day SMA) en route to 1.1448 (monthly high Mar.20).

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 bouncing modestly on disappointing US Consumer Confidence

The shared currency remains pressured by the idea that the ECB will come out with massive stimulus measures in September. US Michigan Consumer Confidence down to 92.1 brakes dollar's gains.


GBP/USD retreats sharply after approaching 1.2200

The GBP/USD pair came under selling pressure after flirting with weekly highs, as a dismal US confidence report brought back risk-off. GBP/USD still up for the week and above the critical 1.2100 level.


USD/JPY: Greenback makes modest progress against Yen, near 106.30

The demand for Yen as a safe-haven currency has been weak in the last three days. The levels to beat for bulls are at the 106.30 and 106.55 resistances.


Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more