EUR/USD remains under pressure near 1.10, focus on US docket
- EUR/USD stays depressed near the 1.1000 handle.
- DXY moved to weekly highs earlier in the day.
- US GDP, PCE, Durable Goods next due later in the day.
The sentiment around the shared currency remains depressed so far this week, with EUR/USD orbiting around the 1.10 region.
EUR/USD focused on data
The pair has resumed the downside following Tuesday’s recovery attempt, although the critical support in the 1.10 neighbourhood continues to hold the downside pretty well for the time being.
In the meantime, there are no significant headlines from the US-China trade front other than recent comments by President Trump that a deal between both parties is ‘very close’, which collaborated further with the upbeat mood in the risk-associated complex.
Absent releases in Euroland on Wednesday, all the attention will move to the US calendar, which includes another revision of the Q3 GDP, October’s Durable Goods Orders, Personal Income/Spending, usual Initial Claims and the inflation measured by the PCE.
What to look for around EUR
Spot has been rejected from the vicinity of the 1.1100 barrier once again last week, sparking a corrective downside to the 1.10 neighbourhood, which continues to act as a solid contention area. As always, EUR is expected to keep tracking trade headlines and USD-dynamics for the time being. On the more macro view, the slowdown in the region appears far from abated despite some positive results from key fundamentals in Germany as of late. This does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the cautious/bearish view on the European currency in the medium term.
EUR/USD levels to watch
At the moment, the pair is retreating 0.11% at 1.1008 and a breakdown of 1.0989 (monthly low Nov.14) would target 1.0925 (low Sep.3) en route to 1.0879 (2019 low Oct.1). On the flip side, the initial hurdle aligns at 1.1097 (monthly high Nov.21) followed by 1.1167 (200-day SMA) and finally 1.1179 (monthly high Oct.21).