EUR/USD remains offered around 1.10, looks to ECB-speak
|- EUR/USD gave away Tuesday’s gains and returns to 1.10.
- The better tone in the Dollar weighs on the pair.
- Attention gyrated to Trump’s impeachment.
The single currency has come under renewed and moderate selling pressure in the middle of the week and is dragging EUR/USD back to the 1.10 neighbourhood.
EUR/USD focused on US politics, data
The pair has faded Tuesday’s spike to weekly highs near 1.1030 as the Greenback resumed its downside, shrugging off news of the Democrat’s inquiry impeachment against President Trump and the tick lower in the Consumer Confidence for the current month.
The offered bias around spot remains well and sound so far today, quickly leaving behind the lackluster improvement from the IFO’s Business Climate in Germany for the current month (published yesterday). Investors appear to have shifted their attention to the US-China trade developments and fundamental data in Euroland.
There are no significant releases in the euro docket today, while ECB’s B.Coeure will participate in a hearing in Berlin later in the afternoon.
What to look for around EUR
EUR is facing extra downside pressure at the beginning of the week and threatens to extend the move to 2019 lows in the 1.0920 region, as any recovery in the German economy appears to take longer than expected in light of the recent flash PMIs. The unremitting slowdown in the region justifies the looser for longer monetary conditions by the ECB and adds to the probability that the German economy could slip into technical recession in Q3. Adding to this gloomy scenario, potential US tariffs on imports of EU cars remain well on the table, while persistent uncertainty around Brexit adds to the downbeat outlook.
EUR/USD levels to watch
At the moment, the pair is losing 0.20% at 1.0997 and a break below 1.0966 (low Sep.23) would target 1.0925 (2019 low Sep.3) en route to 1.0839 (monthly low May 11 2017). On the flip side, the initial hurdle emerges at 1.1026 (21-day SMA) followed by 1.1109 (monthly high Sep.13) and finally 1.1163 (high Aug.26).
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.