12 September, 2018
On the back foot ahead of ECB’s staff projections, trade woes. Upbeat US PPI data could knock-off EUR/USD to 1.1550 level.
The EUR/USD pair extends its choppy trend into the European session, unable to sustain the bounce once again above the 1.16 handle, as the bulls remain unnerved ahead of the ECB’s monetary policy meeting due tomorrow.
EUR/USD: All eyes on trade and ECB
Persistent demand for the US dollar amid looming US-China trade concerns and uncertainty over the trade talks between the US and Canada continues to keep the EUR/USD pair under pressure so far this Wednesday, with every upside attempt sold-off just ahead of the 1.1600 level.
The subdued trading seen in the spot is also driven by increased cautiousness heading into the European Central Bank (ECB) monetary policy meeting due tomorrow. According to the latest Bloomberg headlines, the ECB is likely to make downward revisions to the economic growth forecasts at its policy meeting.
On the other hand, stronger US fundamentals reinforced the Fed’s tightening plans and kept the sentiment around the buck somewhat buoyed. Looking ahead, attention now turns towards the US PPI data, which is likely to add to the USD strength, as a bigger-than-expected drop in the Eurozone industrial figures weighed further on the common currency. Eurozone July industrial production arrived at-0.8% versus -0.5% m/m expected.
EUR/USD Technical Levels
According to Slobodan Drvenica at Windsor Brokers, “upside potential exists and is supported by rising bullish momentum, with 30SMA required to hold. Break above 55SMA would generate an initial bullish signal, with break and close above thin daily cloud (spanned between 1.1649 and 1.1678 and is turning lower on Thursday) and falling 100SMA (1.1685), is needed to open way for attack at key barriers at 1.1733/50 (28 Aug high/late Aug lower platform). Alternatively, a bearish signal could be expected on close below 30SMA, which would unmask 1.1526 (10Sep low) and open way for further retracement of 1.1300/1.1733 ascend. Res: 1.1612; 1.1644; 1.1659; 1.1685. Sup: 1.1570; 1.1557; 1.1526; 1.1466.”
Analysts at ING are expecting the EUR/USD pair to trade back to 1.12 over coming months, guided by the modest dollar strength. There's very little..
The precious metal traded with a mild positive bias for the fourth consecutive session on Friday, albeit seemed struggling to build on its positive move beyond...
The GBP/USD pair built on its steady intraday climb and refreshed session tops in the last hour, recovering a major part of Friday's corrective slide...
The minutes of the US Federal Reserve December 15-16 meeting was published yesterday. The Fed had in its December meeting raised the interest rates from record low levels for the first time in a decade...
Oil prices reversed daily losses during the New York session amid profit taking in the absence of fundamental catalysts. WTI turned positive for the day after hitting a fresh 6-year low of $36.64 a barrel, and climbed back above $38.00 a barrel...
The European stocks rallied on Thursday as the investors now look towards the Dec 3rd European Central Bank (ECB) meeting, where Draghi is expected to announce additional stimulus measures...
The immediate resistance is seen at 1091.53 (hourly 50-MA), above which the prices could test 1100. On the other side, support is seen at 1085.44 (Fridayâ€™s low), under which the losses could be extended to 1070 (July lows)...
As per past patterns, a sharp rise in the manufacturing PMI is followed by an uptick in the services PMI figure. The manufacturing PMI released on Monday beat expectations by a wide margin and printed at 16-month high...
Gold prices in the EUR terms extended post-ECB gains today as the metal continues to cheer the prospects of fresh currency debasement in December- more QE/rate cut...