EUR/USD flirting with daily highs around 1.1140
|- EUR/USD pushes higher to the 1.1140 region on Thursday.
- Coronavirus fears, US Payrolls prompt cautiousness among traders.
- US Claims, Factory Orders next of note in the NA session.
The buying interest appears to have returned to the single currency in the second half of the week, with EUR/USD trading close to the area of 1.1140, or daily peaks.
EUR/USD focused on data, coronavirus
EUR/USD is alternating gains with losses in the 1.1140 zone following the opening bell in Euroland on Thursday, all against the backdrop of a generalized consolidative mood in the global markets.
Indeed, market participants as well as volatility appear to be taking a breather in the second half of the week following recent volatile sessions, particularly in response to the unexpected 50 bps rate cut by the Federal Reserve on Tuesday.
In the meantime, and with coronavirus fears still unabated, investors continue to look to the G7 central banks in order to gauge the probability of further easing measures (mainly via interest rate cuts) aimed to tackle the impact of the coronavirus outbreak on the economy.
Absent data releases or events in the euro docket, the focus of attention will shift to the US data space, where Factory Orders and the weekly report on the US labour market are due along with Unit Labor Costs and Non-farm Productivity.
What to look for around EUR
EUR/USD came under pressure following weekly/monthly tops beyond the 1.1200 mark. In the meantime, the ECB remains vigilant and ready to act in case the outlook deteriorates further in response to the coronavirus and particularly after the Fed cut rates on Tuesday. On another front, the ECB is expected to finish its “strategic review” (announced at its January meeting) by year-end, leaving speculations of any change in the monetary policy before that time pretty flat. Further out, recent better-than-expected results in both Germany and the broader Euroland appear to have re-ignited some optimism among investors regarding the possibility of some recovery in the region and the currency. This view is also supported by rumours of fiscal stimulus in Germany.
EUR/USD levels to watch
At the moment, the pair is gaining 0.04% at 1.1138 and a breakdown of 1.1097 (200-day SMA) would target 1.1037 (55-day SM) en route to 1.0992 (monthly low Jan.29). On the flip side, the next hurdle lines up at 1.1213 (weekly/monthly high Mar.3) seconded by 1.1239 (monthly high Dec.31 2019) and then 1.1249 (monthly high Aug.6 2019).
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.