- The pair falls within the daily 40-pip range so far today.
- US 10-year yields around 2.99%, testing recent tops.
- German IFO signalled economy might be facing slowdown.
EUR/USD is alternating gains with losses on Tuesday, keeping the range between fresh lows near 1.2180 and session tops near 1.2220.
EUR/USD fragile, looks to data
The pair’s price action remains exclusively dependent on USD-dynamics, where the demand for the buck picked up considerable pace as of late and pushed the US Dollar Index (DXY) to fresh 3-month peaks in the 91.00 neighbourhood.
Adding to the persistent weakness around spot, yields of the key US 10-year benchmark are once again flirting with the psychological 3.0% level, or multi-year tops, as investors have shifted their attention to monetary policy.
In the data space, disappointing IFO figures in Germany capped occasional upside and kept the sentiment depressed around EUR. In the US docket, house prices tracked by the S&P/Case-Shiller Index rose at a non-seasonally-adjusted 6.8% YoY in February. Next on tap will be the CB’s Consumer Sentiment for the month of April and New Home Sales.
EUR/USD levels to watch
At the moment, the pair is up 0.07% at 1.2218 and a break above 1.2314 (21-day sma) would target 1.2321 (10-day sma) en route to 1.2414 (high Apr.17). On the other hand, immediate contention emerges at 1.2184 (low Apr.24) seconded by 1.2165 (low Jan.18) and finally 1.2153 (low Mar.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. 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.
Recommended content
Editors’ Picks
EUR/USD holds steady below 1.0600 ahead of PMIs, Powell
EUR/USD is consolidating in a narrow range below 1.0600 in early Europe on Monday. The pair keeps its calm amid a steady US Dollar, higher US Treasury bond yields and a cautious mood. US ISM PMI and Powell's speech in focus.
GBP/USD struggles below 1.2200, awaits central banks' speakers
GBP/USD is trading below 1.2200, struggling to gain any meaningful traction in the European trading on Monday. The risk-on impulse is seen undermining the safe-haven USD and lending support to the major. US PMI, BoE and Fed speeches awaited.
Gold price consolidates near multi-month low, awaits US ISM PMI and Fed Chair Powell’s speech
Gold price continues losing ground for the sixth straight day and drops to a near seven-month low. Bets for further policy tightening by the Fed turn out to be a key factor weighing on the “XAU/USD”.
Week ahead: Fed speech and NFP likely to dictate crypto market moves this week
With the start of 2023’s fourth quarter, things are finally getting interesting in crypto. While the next 12 weeks are extremely important, let’s start by focusing on what to expect this week.
ISM Manufacturing PMI Preview: Worst for US factory activity could be over
The ISM will publish the United States September Manufacturing PMI today. The index is expected to have ticked modestly higher to 47.7 from its previous monthly reading of 47.6.