EUR/USD weaker, approaches 1.0900 ahead of ECB


  • EUR/USD loses steam and trades closer to the 1.09 mark.
  • The dollar appears bid in a context favourable to risk-aversion.
  • The ECB will publish its minutes of the latest meeting later on Friday.

The selling pressure around the single currency is picking up further pace at the end of the week and is motivating EUR/USD to trade closer to the key support at 1.0900 the figure.

EUR/USD offered on risk-off trade, looks to ECB

EUR/USD is so far losing ground for the second session in a row on the back of the recent recovery in the greenback, which in turn met support in the demand for the safe haven universe.

In fact, renewed concerns on the US-China trade front and the China-Hong Kong scenario have gathered extra pace in past hours, prompting investors to dump riskier assets in favour of safer ones, like the dollar, the Japanese yen and US bonds.

Later in the session, the ECB will release its minutes (Accounts) of the 29-30 April meeting, while Board member Philip Lane will participate on a virtual conference on “Inflation: Drivers and Dynamics 2020” organized by the Cleveland Fed.

What to look for around EUR

EUR/USD has managed to briefly test the 1.1000 barrier earlier in the week, although losing vigour soon afterwards. In addition, better-than-expected results in Germany and the broader euro area also sustained the strong rebound in the pair in the first half of the week along with positive prospects regarding the re-opening of some economies in the bloc. In the meantime, the solid position of the euro area’s current account keeps deeper pullbacks in the pair somewhat contained for the time being. In the political scenario, the recent German court ruling against purchases of sovereign debt under the ECB’s QE programme threatens to widen the existing cracks within the euro area and could limit any serious recovery in the currency. This view has been also exacerbated after the French-German proposed fund to help economies to recover from the coronavirus fallout met resistance among some Northern-European members.

EUR/USD levels to watch

At the moment, the pair is losing 0.29% at 1.0916 and faces immediate contention at 1.0774 (weekly low May 14) seconded by 1.0727 (monthly low Apr.24) and finally 1.0635 (2020 low Mar.23). On the upside, a breakout of 1.1008 (weekly high May 21) would target 1.1012 (200-day SMA) en route to 1.1019 (monthly high May 1).

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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD chops around amid end-of-month flows, ahead of Trump

EUR/USD is battling 1.11, close to the two-month highs amid choppy trading. Hopes for a fiscal boost in Europe and mixed satisfactory data have supported the currency pair. , Sino-American tensions are rising and investors await President Trump's China announcement.

EUR/USD News

GBP/USD advances amid US dollar weakness, shrugging off concerns

GBP/USD is trading above 1.23, edging higher amid US dollar weakness and Britain's gradual reopening. Intensifying Sino-American tensions and the Brexit impasse are ignored. 

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures