- EUR/USD adds to recent gains well above the 1.17 yardstick.
- Joe Biden keeps leading the US elections results.
- Markets’ attention remains on the FOMC event later on Thursday.
The buying bias remains well and sound around the single currency for yet another session and lifts EUR/USD to new weekly highs around 1.1770.
EUR/USD flirts with the 55-day SMA near 1.1780
EUR/USD advances for the third session in a row on Thursday and looks to consolidate the recent move on the back of the improved sentiment in the risk complex.
Indeed, the likelihood of a Biden win at the US elections has been supporting the better mood surrounding the riskier assets in past hours against the steady backdrop of the unremitting advance of the pandemic.
It is worth recalling that extra fiscal stimulus appears more likely under a Biden presidency as well as a multilateral approach (more market-friendly) to the US-China trade conflict.
In the euro docket, German Factory Orders expanded less than forecasted 0.5% MoM in September, while Retail Sales in the broader euro area are due next followed by speeches by ECB’s Luis De Guindos and Isabel Schnabel.
Across the Atlantic, all the looks will be upon the FOMC event, where the Committee is expected to leave rates on hold.
What to look for around EUR
EUR/USD manages to pick up pace and revisits the 1.1770 region amidst a favourable environment in the risk-associated universe. In the very near-term, EUR/USD is expected to remain under scrutiny on USD-dynamics mainly coming from the elections, the FOMC gathering and the Nonfarm Payrolls (Friday). On the more domestic front, the euro appears propped up by auspicious results from domestic fundamentals (despite momentum appears somewhat mitigated in several regions), although the now more dovish stance from the ECB prompts some caution when comes to bullish attempts. As usual, the euro still looks supported by the solid position of the EMU’s current account.
EUR/USD levels to watch
At the moment, the pair is gaining 0.34% at 1.1761 and a break above 1.1771 (monthly high Nov.4) would target 1.1880 (monthly high Oct.21) en route to 1.1917 (high Sep.10). On the downside, the next support aligns at 1.1622 (monthly low Nov.2) followed by 1.1612 (monthly low Sep.25) and finally 1.1495 (monthly high Mar.9).
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