EUR/USD under pressure near 1.10 ahead of German data


  • EUR/USD keeps business near the 1.10 mark.
  • The FOMC left rates on hold on Wednesday.
  • German jobs, advanced CPI next of relevance.

The single currency remains under scrutiny in the second half of the week, always with EUR/USD hovering around the key 1.10 mark.

EUR/USD now looks to German docket

The pair keeps navigating the lower end of the current range close to the 1.10 neighbourhood on Thursday, always amidst USD-strength and the recent bounce off YTD lows in the 1.0990 region (Wednesday).

In the meantime, growth fears following the Wuhan coronavirus appear somewhat mitigated and seem supporting the improved mood in the risk-associated complex, at the same time sustaining the bounce off recent lows.

Later in the day, the focus of attention is expected to be on the German labour market report ahead of advanced inflation figures for the month of January. Across the pond, flash GDP figures for the October-December period will be in the spotlight seconded by weekly Initial Claims.

What to look for around EUR

The pair remains well under pressure and continues to put the 1.1000 support to the test. Dynamics around the buck are expected to remain the exclusive driver of the pair’s price action for the time being along with alternating risk appetite trends in response to developments from the Wuhan coronavirus. On another scenario, the ECB is expected to finish its strategic review (announced last Thursday) by year-end, leaving speculations of any change of the monetary policy before that time pretty flat. Further out, some better-than-expected results in the euro region as of late seem to have lent support to the idea that the bloc could have left the worst behind, although that view looks premature, to say the least.

EUR/USD levels to watch

At the moment, the pair is advancing 0.04% at 1.1014 and faces the next barrier at 1.1067 (100-day SMA) seconded by 1.1089 (55-day SMA) and finally 1.1126 (200-day SMA). On the other hand, a breakdown of 1.0992 (weekly/2020 low Jan.29) would target 1.0981 (monthly low Nov.29 2019) en route to 1.0925 (low Sep.3 2019).

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD refreshes intraday low near 0.7750 ahead of Aussie Retail Sales, Trade Balance

AUD/USD extends the previous day’s losses from weekly top. RBA failed to entertain markets but Treasury yields stole the show. Risk-off heavies the quote ahead of final readings of key data.

AUD/USD News

EUR/USD retreats to stabilize around 1.2060

The EUR/USD pair advanced to 1.2112 but retreated amid the renewed dollar’s demand on resurgent government bond yields. Attention now shifts to US employment-related data.

EUR/USD News

Gold bears eye sub-$1,700 area amid strong yields, US dollar

Gold remains pressured near nine-month low, fades bounce off $1,702. Bond bears return amid optimism concerning US stimulus and vaccine power, comments from ECB add to the Treasury yield rally. American covid aid package, Fed’s Powell eyed amid a light calendar in Asia.

Gold News

Dogecoin price on the brink of a 40% explosion towards $0.07

Dogecoin price has been trading sideways for the past two days and inside a downtrend since its new all-time high of $0.087 on February 7. Now, the favorite canine-cryptocurrency is ready for a new leg up.

Read more

DXY continues to gain on Wednesday, eyes 91.60

US dollar firm and approaching Feb 4th highs from a significant technical support structure. US economy moderately gathering pace according to the Fed's Beige Book.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures