HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

Euro Recovers, Aiming for 1.0900 as Market Anticipates US ISM and Comments from Lagarde


1 December 2023 Written by Anna Segal  Finance Industry Expert Anna Segal

As the trading week draws to a close, the Euro (EUR) is witnessing a recovery against the U.S. Dollar (USD), with the EUR/USD pair approaching the 1.0900 mark. This rebound indicates a regaining of momentum for the Euro after a period of subdued performance. Simultaneously, the U.S. Dollar has relinquished some of its gains from the past two days, with the USD Index (DXY) falling back to around the 103.40 area. This shift occurs amidst a lack of clear direction in U.S. yields across various timeframes, reflecting a broader market uncertainty.

Speculations Investors are currently weighing the possibilities of interest rate cuts by both the Federal Reserve (Fed) and the European Central Bank (ECB) in the spring of 2024. This speculation contributes to the current cautious but anticipatory market stance.

Looking ahead, the market's focus will be on upcoming speeches by ECB officials, including Andrea Enria, Frank Elderson, and President Christine Lagarde. In the U.S., key data releases such as the ISM Manufacturing Index, Construction Spending, and the final S&P Global Manufacturing PMI for November will be closely monitored for further market direction.

Euro's Position Amidst Global Yields and PMIs

Currently, the Euro is exhibiting a somewhat directionless movement against the Dollar. The yields in the U.S. and Germany are showing mixed trends, reflecting the complexities in the global financial landscape. Additionally, the recent rise in China's Caixin Manufacturing PMI past the 50 mark in November adds another layer to the global economic picture.

Market participants are keenly awaiting ECB President Lagarde's speech later in the session. Similarly, Federal Reserve Chair Jerome Powell's participation in a roundtable discussion is also on the radar, potentially offering insights into future monetary policy directions.

The EUR/USD pair currently fluctuates below the 1.0900 level, following a significant pullback on Thursday. Should the pair experience further losses, the key 200-day Simple Moving Average (SMA) at 1.0817 might act as an initial support, followed by the 55-day SMA at 1.0679, providing temporary support. Breaking below these levels could expose the pair to the weekly low of 1.0495 (October 13) and even the 2023 low of 1.0448 (October 3), with the round level of 1.0400 as a further target.

On the flip side, any bullish attempts could face immediate resistance at the November high of 1.1017 (November 29), followed by the August peak of 1.1064 (August 10) and the July high of 1.1149 (July 27). The ultimate target remains the 2023 top at 1.1275 (July 18). The EUR/USD pair's overall positive outlook is expected to hold as long as it stays above the 200-day SMA. As the Euro shows signs of recovery against the Dollar, the focus shifts to forthcoming speeches by central bank leaders and key economic indicators. The market’s anticipation of these events, coupled with technical analysis, indicates a critical juncture for the EUR/USD pair, with potential for both upward and downward movements in the near term.

Share: Tweet this or Share on Facebook


Related

Exploring EURUSD's Prospects: Is It Poised for an Uptrend Resurgence Above the Ascending Line?
Exploring EURUSD's Prospects: Is It Poised for an Uptrend Resurgence Above the Ascending Line?

EURUSD Embarks on a Rebound Off the 200-day SMA, Yet Clings Below the Ascending Trend Line: The EURUSD currency pair has recently experienced a resurgence, with notable price action centered around...

25 Jan 2024

EUR/USD Outlook: Insights from Davos and Federal Reserve Speeches
EUR/USD Outlook: Insights from Davos and Federal Reserve Speeches

Recent insights from European Central Bank (ECB) officials, including Gediminas Šimkus and Madis Müller, indicate a cautious approach to immediate rate cuts, hinting at a potential move in the summer...

17 Jan 2024

Will the US NFP Report Resurrect the Ailing Dollar?
Will the US NFP Report Resurrect the Ailing Dollar?

In January, the Euro area witnessed a modest improvement in investor sentiment, as indicated by the Sentix Investor Confidence Index, which rose slightly to -15.8 from -16.8 in December...

8 Jan 2024

EUR/USD Price Outlook: Awaiting US Employment Data Amidst Rising Pressure
EUR/USD Price Outlook: Awaiting US Employment Data Amidst Rising Pressure

The EUR/USD currency pair has been experiencing downward pressure, notably retreating from a recent high near 1.0950, as market sentiment shifts to a cautious stance in anticipation...

5 Jan 2024

EUR/USD Under Pressure Following German Employment Figures, Awaiting US Economic Updates
EUR/USD Under Pressure Following German Employment Figures, Awaiting US Economic Updates

The EUR/USD currency pair has seen a contraction of its earlier gains, now approaching the 1.0940 level, in the wake of the latest employment data from Germany. This move comes amidst a broader context...

3 Jan 2024

EUR/USD Steadies Near 1.1050 as 2023 Concludes
EUR/USD Steadies Near 1.1050 as 2023 Concludes

As the trading year of 2023 draws to a close, the EUR/USD pair is holding its ground in relatively thin market conditions. The Euro (EUR) is poised to register a 3% gain against the US Dollar (USD) for the year...

1 Jan 2024


MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.