FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
90%
HFM information and reviews
HFM
89%

Euro's fortunes set to reverse?


13 April 2021 Written by Hussein Al Sayed  Chief Market Strategist at Exinity Group (Gulf & MENA) Hussein Sayed

The euro has seen a recovery of late, strengthening against most of its G10 peers so far this month except for versus the Swiss Franc and the Swedish Krona. Such a performance is reflected in the EUR index climbing by more than one percent on a month-to-date basis. This is an equally-weighted index, comprising the following currency pairs:

A couple of key technical events have transpired of late that should form a more solid base for this index to climb higher.

Firstly, prices have formed a higher high and have breached its 50-day simple moving average (SMA). Meanwhile, its MACD has recently moved above the base line of 0. A sustained break above the 1.3210 line, which was the resistance level form early March and also the support level for some early February price action, could ultimately lead the EUR index to the 1.3277 mark. Otherwise, a break back below its 50-SMA could open a path back towards the 1.3100 mark.

Euro’s fate depends on key data

The euro has been able to hold on to recent gains, following its better-than-expected February retail sales data that was announced yesterday. It rose by 3% compared to January, beating estimates of 1.7%. The year-on-year figure shrank by 2.9%, which is still better than the 5.3% decline that markets had expected. Both the month-on-month and year-on-year prints also fared better than January’s figures.

Investors will have to several key events to monitor over the coming days that could determine the shared currency’s performance over the course of the week:

Tuesday, April 13

Friday, April 16

Euro’s outlook mixed

Intriguingly, the 25 delta risk reversals show that markets are bullish on the euro’s performance against all other G10 currencies, except against the Japanese Yen, for the next 2-month period. Meanwhile, the latest data from the CFTC (Commodity Futures Trading Commission) for the week of April 6 shows a mixed outlook for the euro. Leveraged funds have raised their net-short positions on the euro to the highest since July. On the other hand, asset managers have increased their net euro longs to reverse two consecutive weeks of paring back such positions.

Note that the EU recovery fund that’s worth 750 billion euros is due to course its way through the bloc in the middle of this year, once it is ratified by member countries. Such financial aid is set to offer more help to the continent’s recovery into the post-pandemic era.

Until then, it is imperative that the continent has a firm grip on the pandemic and gets its vaccination drive back on track to catch up with the inoculation rates seen in the UK and the US. That could form the basis for its economic recovery which could then translate into a sustained rebound for the euro.

#source

Share:


Related

The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast
The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast

Before getting down to analyzing why Euro reminds of a mafia victim in cement shoes falling off a Chicago bridge, allow us to open it up with a meme joke that best describes this whole ordeal...

5 Oct 2022

Positive mood stalls on the “pivot” trade
Positive mood stalls on the “pivot” trade

USD slid against most of its major peers. The DXY closed a tick above its lows of 110.05. Resistance is at 110.76 while next support is 109.29. GBP gained for a sixth session in a row, a winning streak not seen since April 2021...

5 Oct 2022

OctaFX glances at current economic shifts - the good, the bad, and the strange
OctaFX glances at current economic shifts - the good, the bad, and the strange

Pandemics and health crises, political tensions, geopolitical tension flashpoints popping up, Western sanctions on significant European and Asian economies, and grave tensions between...

3 Oct 2022

The Euro rebounded from the low
The Euro rebounded from the low

After updating its multi-year lows again, the major currency pair rebounded. The current quote for the instrument is 0.9656. Last night, the local interest in risks improved a bit, helping the asset to successfully correct...

29 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back...

28 Sep 2022

Forex and Cryptocurrencies Forecast for September 26-30, 2022
Forex and Cryptocurrencies Forecast for September 26-30, 2022

Last week, all the attention of the markets was focused on the FOMC meeting of the US Federal Reserve, which took place on September 21. The probability of another rate hike by 75 basis points (bp)...

26 Sep 2022


Editors' Picks

IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
MultiBank Group information and reviews
MultiBank Group
84%
Vantage information and reviews
Vantage
83%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 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.