- EUR/USD alternates gains with losses around 1.0800.
- German Industrial Production dropped more than 9% in March.
- Investors’ attention remains on US weekly Initial Claims.
The sentiment around the single currency leans towards the cautious tone in the second half of the week, with EUR/USD orbiting around the 1.08 level at the time of writing.
EUR/USD focused on data
Following three consecutive daily pullbacks, EUR/USD is now showing some signs of stabilization in the 1.0800 neighbourhood, always against the backdrop of the generalized side-lined mood in the global markets.
In fact, rising cautiousness among investors ahead of key US data on Friday are bolstering the ongoing rangebound in the pair, which keeps navigating the lower bound of the weekly range.
On another front, the European Commission published its Spring Forecasts on Wednesday and it now sees the economy of the region contracting 7.1% this year and rebounding sharply by around 6% in 2021. In the same line, the unemployment rate is expected to surge to 9.0% during the current year and drop to around 7.9% in the following year. Regarding inflation, consumer prices are forecasted to rise at an annualized 0.6% in 2020 and 1.3% in 2021.
Earlier on Thursday, the German Industrial Production recorded a record 9.2% contraction during March, while the same indicator dropped more than 16% in France during the same period, showing the devastating impact of the coronavirus on the economy.
Across the pond, the attention will be on the weekly Initial Claims, where more than 20 million US citizens have already filed for unemployment insurance.
What to look for around EUR
The euro appears to have met some decent contention in sub-1.0800 levels so far this week in a context of poor results from fundamentals in the region and a broad-based consolidation theme ahead of Friday’s US Payrolls. In the meantime, the attention in the Old Continent stays on the re-opening of some economies and the somewhat renewed optimism on the back of shrinking infected cases and deaths by the COVID-19, particularly in Spain and Italy.
EUR/USD levels to watch
At the moment, the pair is gaining 0.10% at 1.0802 and a breakout of 1.0950 (55-day SMA) would target 1.1019 (weekly/monthly high May 1) en route to 1.1028 (200-day SMA). On the other hand, the next down barrier emerges at 1.0782 (weekly low May 6) seconded by 1.0727 (monthly low Apr.24) and finally 1.0635 (2020 low Mar.23).
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
GBP/USD stays below 1.2450 after UK employment data
GBP/USD trades marginally lower on the day below 1.2450 in the early European session on Tuesday. The data from the UK showed that the ILO Unemployment Rate in February rose to 4.2% from 4%, weighing on Pound Sterling.
EUR/USD steadies above 1.0600, awaits German ZEW and Powell speech
EUR/USD is holding above 1.0600 in the European morning on Tuesday, having hit fresh five-month lows. The pair draws support from sluggish US Treasury bond yields but the rebound appears capped amid a stronger US Dollar and risk-aversion. Germany's ZEW survey and Powell awaited.
Gold price holds steady below $2,400 mark, bullish potential seems intact
Gold price oscillates in a narrow band on Tuesday and remains close to the all-time peak. The worsening Middle East crisis weighs on investors’ sentiment and benefits the metal. Reduced Fed rate cut bets lift the USD to a fresh YTD top and cap gains for the XAU/USD.
SOL primed for a breakout as it completes a rounding bottom pattern
Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.
Key economic and earnings releases to watch
The market’s focus may be on geopolitical issues at the start of this week, but there is a large amount of economic data and more earnings releases to digest in the coming days.