fxs_header_sponsor_anchor

News

EUR/USD failure at 1.1600 opens the door for 1.1500

  • The market sentiment is upbeat weighs on US T-bond yields and the greenback.
  • Eurozone inflation rose by 3.4%, above the ECB’s target, 
  • US ISM Manufacturing PMI shows expansion in the overall economy, according to the ISM.

The EUR/USD is trimming losses, trading at 1.1596, barely up 0.13% during the day at the time of writing.  As the New York session progresses, the market sentiment has improved. The four US major stock indices are recording gains between 0.68% and 1.72%. On the other hand, renewed optimism late during the American session struck the US T-bond yields, with the 10-year benchmark note coupon losing more than a half percent, sitting at 1.472%, for the first time since Monday. 

The US Dollar Index, which tracks the US dollar performance against six peers, is recording losses for the second consecutive day, is down 0.23%, clinging to 94.04, exerting upward pressure on the EUR/USD pair.

Eurozone Consumer Price Index rose above 3.4%

In the Eurozone economic docket, the September Consumer Price Index readings were released. The Core Consumer Price Index rose by 1.9% as expected, whereas the Consumer Price index jumped above 3.3%, foreseen by economists, came at 3.4%. 

US ISM Manufacturing PMI expanded the most in four months

Across the pond, the Institute for Supply Management released the PMI for September. The reading rose to 61.1, better than the 59.6 expected by analysts. According to the report, the reading indicates “expansion in the overall economy for the 16th month in a row after the contraction in April 2020.” 

In the meantime, the University of Michigan Consumer Confidence edged slightly higher to 72.8 more than 71 foreseen. The report shows that American people are somewhat more optimistic about current economic conditions.

The favorite Fed’s reading for inflation, the Personal Consumption Expenditure Index for August, increased by 3.6% on an annual basis, a tenth higher of the expectations. 

For the next week, the European economic docket will feature on Wednesday the Retail Sales on an annual and a monthly basis, expected at 0.4% and 0.8%, respectively.

On the other hand, investors will look for the US ISM Services PMI  for September will be released on Tuesday. Further, on Wednesday, the ADP Employment for September could prelude how the Nonfarm Payrolls reading could be once it is released on Friday.

KEY ADDITIONAL LEVELS TO WATCH

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.