- EUR/USD remains steady after UK confidence vote and Fed’s Beige Book.
- Euro stabilizes a hundred pips below Friday’s close.
The EUR/USD pair continues to consolidate around 1.1400, posting a marginal daily loss. It moved sideways all day, validating yesterday’s losses. The euro bottomed at 1.1377 and then bounced to the upside, it still appears to be under some bearish pressure.
According to the Fed’s Beige Book, economic activity expanded in most of the US, with eight of 12 Fed districts reporting modest-to-moderate growth. The report had no impact on the US dollar that was about to end the day with mix results.
https://www.fxstreet.com/news/feds-beige-book-a-number-of-fed-districts-said-higher-tariffs-were-a-factor-in-cost-increases-201901161903
In the UK, PM May’s survived a no-confidence motion by a small margin. The result came as expected, and it was ignored by market participants. PM May announced that will start meeting with leaders tonight. In Greece, PM Tsipras will face later today a confidence vote.
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet, points out that EUR/USD extended its weekly decline by a few pips, touching 1.1377 before bouncing some, “with buyers still defending lower ground at around 1.1380, the 61.8% retracement of the December/January rally. The daily high was achieved during Asian trading hours at 1.1424, slightly above the 50% retracement of the same run.”
“Technical readings in the 4 hours chart suggest the risk remains skewed to the downside, as the pair spent the day seesawing around a flat 200 SMA and below the shorter ones, while technical indicators remain below their midlines, lacking certain directional strength”, concluded Bednarik.
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