EUR/USD unmoved at 1.1150 after EU GDP data

Haresh Menghani FXStreet

The EUR/USD pair held on to its gains around 1.1150 region following the release of in-line with estimates Euro-zone GDP print for Q2 2016.

According to a flash estimate published by Eurostat, the Euro area seasonally adjusted GDP rose by 0.3% during the second quarter of 2016. The reading matched consensus estimates but showed slight deteriorating as compared to 0.6% growth recorded in the first quarter of 2016.

Meanwhile, Euro zone industrial production rebounded sharply and rose by 0.6% m-o-m in June vs previous contraction of 1.2%.

The pair had a muted reaction to the releases as market now awaits for US economic data, which would determine the Fed monetary policy outlook and eventually drive the major in the near-term.

Technical levels to watch

On a follow through buying interest above 1.1150 region, the pair is likely to make a fresh attempt to reclaim 1.1200 handle, which if conquered should lift the pair towards the very important 100-day SMA resistance near 1.1230 region.

On the flip side, 1.1130-10 now seems to act as immediate support area and a sustained weakness below this immediate support seems to drag the pair back towards retesting the very important 200-day SMA support near 1.1080 region. A decisive break below 200-day SMA is likely to trigger a fresh leg of weakness for the pair that is likely to drag the pair immediate towards 1.1020 support area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.