News | Forex Optimum

News

News

EUR/USD regains traction and re-visits the 1.1640 area

  • EUR/USD fades Thursday’s downtick and regains the 1.1640 zone.
  • The greenback resumes the downside on the back of lower yields.
  • EMU, Germany flash Manufacturing PMIs surprised to the upside.

The single currency quickly leaves behind Thursday’s downtick and motivates EUR/USD to retake the 1.1640 region at the end of the week.

EUR/USD propped up by data

EUR/USD regains upside traction and returns to the 1.1650 zone on Friday on the back of the resumption of the selling pressure in the greenback and the upbeat tone in the broad risk-linked universe.

In fact, lower US yields weigh once again on the buck and forces the US Dollar Index (DXY) to fade the bullish intentions recorded during the previous session.

Also supporting the firm note in the pair emerges the better-than-expected preliminary readings for the Manufacturing PMI in both Germany and the broader Euroland for the current month.

Data wise across the pond, Markit will publish the flash PMIs also for the month of October.

What to look for around EUR

EUR/USD advanced further and clinched fresh October peaks near 1.1670 earlier in the week. While the improvement in the sentiment surrounding the risk complex lent extra wings to the par, price action is expected to keep looking to dollar dynamics for the time being, where tapering chatter remains well in centre stage. In the meantime, the idea that elevated inflation could last longer coupled with the loss of momentum in the economic recovery in the region, as per some weakness observed in key fundamentals, are seen pouring cold water over investors’ optimism as well as bullish attempts in the European currency.

Key events in the euro area this week: Preliminary PMIs in the euro zone (Friday).

Eminent issues on the back boiler: Asymmetric economic recovery post-pandemic in the region. Sustainability of the pick-up in inflation figures. Probable political effervescence around the EU Recovery Fund in light of the rising conflict between the EU, Poland and Hungary. ECB tapering speculations.

EUR/USD levels to watch

So far, spot is gaining 0.13% at 1.1638 and faces the next up barrier at 1.1669 (monthly high Oct.19) followed by 1.1709 (55-day SMA) and finally 1.1755 (weekly high Sep.22). On the other hand, a break below 1.1602 (20-day SMA) would target 1.1571 (low Oct.18) en route to 1.1524 (2021 low Oct.12).

 

You may also be interested:

19:51 26.11.2021
Brexit: UK's Frost reiterates UK ready to trigger Article 16
UK Brexit Minister Lord David Frost said on Friday that, while we would still like to find a negotiated solution with the EU on the Northern Ireland Protocol, the gap between our positions is significant and we are ready to use Article 16. These comments are in line with remarks he made earlier in the week. Frost’s EU counterpart Maros Sefcovic also made comments earlier. He said that a decisive push was needed to ensure predictability.
19:46 26.11.2021
South African Scientist: We have every indication that vaccines are still effective
According to South African Scientist Ian Sanne, we have every indication that vaccines are still effective in preventing severe Covid-19 disease from the new variant. However, Sanne said that South African authorities would have conducted more tests by the middle of next week. 
19:44 26.11.2021
USD/MXN heads for highest daily close in a year, back near 22.00
Mexican peso under pressure amid global risk aversion due to new COVID variant. The retreat in USD/MXN found support above 21.65, now is approaching 22.00. The USD/MXN is rising 1.50% on Friday, adding to weekly gains. It peaked during the Asian session at 22.15, the highest level since September 2020 and then pulled back finding support at 21.65. As of writing it is hovering around 21.90 as the market’s sell-off continues. The concerns triggered by the new COVID-19 variant hits
Deposit
options
Trading
platform
download
Bonuses VIP