EUR/USD tumbles to 2-month low

24 October, 2018

The shared currency comes under further selling pressure on Wednesday. Spot comes down and tests fresh lows in the boundaries of 1.1400. EMU, German flash PMIs came in below expectations in October.

The selling pressure is now gathering further steam around the single currency, dragging EUR/USD to fresh 2-month lows in the 1.1400 neighbourhood.

EUR/USD vulnerable on Italy, data

The pair is down for the second week in a row so far today, tumbling to fresh lows and challenging at the same time the critical 1.1400 handle, levels last seen in mid/late-August.

Italy remains the exclusive source of the ongoing and intensified selling mood around the pair, particularly after the EU rejected on Tuesday the proposed 2019 draft budget, sparking further accusations between the parties.

In addition, advanced manufacturing PMIs for the current month in Germany and the euro bloc are seen below expectations, also collaborating with the sour sentiment around EUR.

Still in the euro docket, ECB’s Private Sector Loans expanded at an annualized 3.1% and M3 Money Supply expanded 3.5% on a year to September.

In the US data space, September’s New Home Sales and flash manufacturing and services PMIs for the month of October are next on tap ahead of the weekly report on US crude oil supplies by the DoE.

At the moment, the pair is losing 0.59% at 1.1405 and a break below 1.1402 (low Oct.24) would target 1.1319 (200-week SMA) en route to 1.1299 (2018 low Aug.15). On the upside, the next resistance emerges at 1.1508 (low May 29) seconded by 1.1550 (high Oct.22) and then 1.1574 (55-day SMA).

Source link  
EUR/USD to trade back to 1.12

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..

Gold awaits a breakthrough $1216

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...

GBP bulls now eyeing a sustained move

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 Fed acknowledges uncertainty and risks present in the inflation outlook

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 recovers from below $37.00 a barrel, reverses daily losses

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...

European stocks rise as countdown begins for ECB meeting

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...

Gold remains stuck in a range

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 (Friday’s low), under which the losses could be extended to 1070 (July lows)...

UK services PMI: What to expect of GBP/USD

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/EUR continues upward journey

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...


Share it on:   or