- The pair comes under downside pressure around the 1.1670/60 band.
- The greenback stays bid above the 94.00 handle ahead of Payrolls.
- Focus on Italian politics, Spain confidence vote and US NFP.
The now softer tone around the single currency is forcing EUR/USD to trade in the lower bound of the daily range in the 1.1670/60 band ahead of the opening bell in Euroland.
EUR/USD attention to politics, Payrolls
The pair is now trading on the defensive following two consecutive sessions with gains on the back of a pullback in the greenback and some renewed optimism stemming from the Italian political arena.
However, today’s pick up in the demand for the buck, lack of further auspicious news in Italy and the likeliness that Spanish President M.Rajoy could be ‘forced’ to resign following a ‘no confidence’ vote appear to have removed tailwinds from the bullish attempt in EUR.
In the data space, final May’s manufacturing PMIs in Euroland are coming up next. Across the pond, all eyes will be on the publication of US Non-farm Payrolls for the month of May followed by the key ISM Manufacturing for the same period.
EUR/USD levels to watch
At the moment, the pair is losing 0.18% at 1.1671 facing the immediate support at 1.1642 (low May 31) seconded by 1.1511 (2018 low May 29) and finally 1.1479 (low Jul.20 2017). On the upside, a breakout of 1.1724 (high May 31) would target 1.1782 (21-day sma) en route to 1.1830 (high May 22).
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.