On Monday, the shared currency gained ground versus the US dollar, which was battered as US Treasury bond rates continued to fall, creating a headwind for the buck. Despite a bleak economic picture in the Eurozone (EU), the EUR/USD continues to rise, aided by a weak US dollar. The EUR/USD is currently trading around 1.0957, with buyers aiming for the 1.1000 mark later in the week.
Euro vs US Dollar as market investors await important economic data.
For the second trading day in a row, the US dollar (USD) is still weak. The major driver of the Euro's (EUR) rise is still the US Dollar Index (DXY), which fell 0.35% to 103.00, its lowest level since August. The DXY monitors the value of the US dollar versus six other currencies. The latest US inflation data has raised the likelihood that the US Federal Reserve (Fed) would decrease interest rates later in the year, according to the futures market.
The minutes of the Federal Reserve's Open Market Committee (FOMC) most recent meeting would be available on the calendar on Tuesday. Jobless claims data will be issued on Wednesday, along with preliminary readings for November's Chicago Fed National Activity Index and Flash PMI statistics.
Germany's IFO survey, the most recent minutes of the European Central Bank (ECB) meeting, and the November PMIs would all be available on the EU docket across the pond.
Regarding the central bank, Hernandez de Cos, a member of the ECB, stated that rates should remain at their current level, while Wunsch emphasized that a bet on a reduction in rate cuts might lead to another raise by the EU's central bank. Joachim Nagel, the president of the Bundesbank and a member of the ECB's Governing Council, resisted rate reduction, while Holtzmann stated that the ECB is prepared for further tightening "if necessary."
EUR/USD Technical Review
For the second day in a row, the EUR/USD moved higher and broke above the 1.0900 mark. Given that the price is maintaining a strong hold above the 1.0900 mark, the bias is still upward. As long as the price stays above 1.0885, more gains are probably in store. In the event of a decline, 1.0830 is the next level of support to keep an eye on. To the upside, a break over 1.0965 would take the market to 1.1000. Immediate resistance is located there.
Euro vs US Dollar as market investors await important economic data.
For the second trading day in a row, the US dollar (USD) is still weak. The major driver of the Euro's (EUR) rise is still the US Dollar Index (DXY), which fell 0.35% to 103.00, its lowest level since August. The DXY monitors the value of the US dollar versus six other currencies. The latest US inflation data has raised the likelihood that the US Federal Reserve (Fed) would decrease interest rates later in the year, according to the futures market.
The minutes of the Federal Reserve's Open Market Committee (FOMC) most recent meeting would be available on the calendar on Tuesday. Jobless claims data will be issued on Wednesday, along with preliminary readings for November's Chicago Fed National Activity Index and Flash PMI statistics.
Germany's IFO survey, the most recent minutes of the European Central Bank (ECB) meeting, and the November PMIs would all be available on the EU docket across the pond.
Regarding the central bank, Hernandez de Cos, a member of the ECB, stated that rates should remain at their current level, while Wunsch emphasized that a bet on a reduction in rate cuts might lead to another raise by the EU's central bank. Joachim Nagel, the president of the Bundesbank and a member of the ECB's Governing Council, resisted rate reduction, while Holtzmann stated that the ECB is prepared for further tightening "if necessary."
EUR/USD Technical Review
For the second day in a row, the EUR/USD moved higher and broke above the 1.0900 mark. Given that the price is maintaining a strong hold above the 1.0900 mark, the bias is still upward. As long as the price stays above 1.0885, more gains are probably in store. In the event of a decline, 1.0830 is the next level of support to keep an eye on. To the upside, a break over 1.0965 would take the market to 1.1000. Immediate resistance is located there.