22 May, 2015
The shared currency spiked higher with renewed momentum against the American dollar in the European morning, sending EUR/USD to fresh session highs beyond 1.11 handle. The major jumped to fresh highs after Germany Ifo business conditions improved above markets expectations in May, although worsened only slightly from the previous month.
EUR/USD accelerate gains on upbeat IFO data
The EUR/USD pair trades 0.41% at fresh session highs of 1.1156, retreating from 1.1176 highs post Ifo release. EUR/USD prolongs its overnight gains and remains heavily bid after in line with estimates German GDP supported the EUR bulls. While the latest German Ifo print also added to upside in the main currency pair.
The headline Ifo Business Climate Index fell to 108.5 in May, slighlty below the 108.6 booked in April.
Markets had forecast a drop to 108.3 points in May. Meanwhile, the Current Assessment sub-survey, indicating current conditions in Germany, booked 114.3 points, after the previous month'sfigure of 113.9 and beat forecasts.
Moreover, broad based US dollar weakness following weaker publication of US macro data yesterday also contributes to the strength in the EUR/USD pair.
Meanwhile, traders now shift their focus towards ECB Chief Draghi’s comments which are underway while US CPI figures and Fed Chair Yellen’s speech will abe also closely watched.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.1200 levels, above which gains could be extended to 1.12 23 (May 5 High) levels. On the flip side, support is seen at 1.1100 below which it could extend losses to 1.1063 (May 20 Low) levels.
A subdued USD demand helps build on this week's rebound. Improving risk sentiment does little to prompt fresh selling. US-China trade optimism/Fed rate hike...
Bearish API report, Saudi's pledge and stronger US weigh down on oil. Attention turns towards EIA crude stocks data for fresh impetus to the oil markets...
Rising diplomatic tensions continue to underpin safe-haven demand. Subdued USD price-action remains supportive of a mildly positive tone. A modest...
Struggles to build on overnight strong up-move despite a goodish USD rebound. Bulls tracked retracing US bond yields, tough risk-on mood...
The index rebounds from tops and tests 95.70. Yields of the US 10-year note ease a tad from peaks around 2.90%. US trade balance figures next of relevance...
USD weakness came to a halt yesterday after the Fed's Kaplan emphasised the central bank's independence, thus reassuring markets that
Brexit uncertainty, Turkish contagion fears leave the higher-yielding GBP vulnerable. Attention turns to Tuesday UK jobs report amid empty docket today...
The commodity extended last week's rejection slide from $1235 horizontal resistance and remains within striking distance of an important horizontal...
Gold has fallen to a yearly low, as it lost around 4% in June itself (end-of period prices), contrasting sharply with the above $13000/oz. price performance in the early part...