- EUR/USD regains the 1.10 neighbourhood ahead of data.
- The pair met contention near 1.0990 on Wednesday.
- German flash November CPI next of relevance.
EUR/USD keeps recovering ground following Wednesday’s weekly lows in the vicinity of 1.0990.
EUR/USD looks to data, trade
The sentiment around the shared currency remains depressed so far on Thursday and continues to navigate the area of 2-week lows in the 1.0990/1.1000 region.
Hopes of a US-China trade deal have been supporting the improved mood in the riskier assets as of late, lending at the same time support to global yields and the sustaining the outflows from the safe havens.
In addition, the recovery in the dollar remains well and sound and stays propped up by auspicious results from the US calendar, particularly after another revision of Q3 GDP came in above expectations on Wednesday.
Later in the day, several gauges of confidence and sentiment are due in Euroland along with ECB’s financial readings and advanced inflation figures in Germany for the current month.
Across the pond, markets will be close due to the Thanksgiving Day holiday.
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 gaining 0.10% at 1.1010 and faces the next hurdle at 1.1040 (55-day SMA) seconded by 1.1076 (100-day SMA) and finally 1.1097 (monthly high Nov.21). On the other hand, 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).
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