- EUR/USD extends the rally to the 1.2170/75 band.
- German Factory Orders expanded 2.9% MoM in October.
- US Nonfarm Payrolls will be in the limelight later in the NA session.
The single currency extends the upbeat sentiment and lifts EUR/USD back to the 1.2170 region at the end of the week.
EUR/USD focused on data
EUR/USD advances for the fourth consecutive session on Friday and manages to record another 32-month peaks in the 1.2170/75 zone.
In fact, hopes of a strong global recovery remain underpinned by rising bets of further US fiscal stimulus and prospects of an effective coronavirus vaccine in the relatively near-term.
In the euro docket, German Factory Orders expanded above estimates 2.9% MoM during October.
Across the Atlantic, NFP will be the salient event later in the session seconded by Factory Orders, Balance of Trade and speeches by FOMC’s C.Evans and M.Bowman.
What to look for around EUR
EUR/USD keeps the march north unabated and it gradually approaches the 1.2200 barrier, always against the backdrop of a favourable context in the risk complex. In the very near-term, EUR/USD appears supported by prospects of a strong recovery in the region along with the increasing likelihood of extra stimulus in the US. Risks to this positive view emerge from the potential political effervescence around the EU Recovery Fund and increasing chances of further ECB easing to be announced as soon as at the December meeting.
EUR/USD levels to watch
At the moment, the pair is gaining 0.25% at 1.2169 and a breakout of 1.2174 (2020 high Dec.4) would target 1.2413 (monthly high Apr.17 2018) en route to 1.2476 (monthly high Mar.27 2018). On the downside, the next support is located at 1.1920 (high Nov.9) seconded by 1.1800 (low Nov.23) and finally 1.1745 (weekly low Nov.11).
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