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  • EUR/USD trades 0.58% higher on the week near 1.1925. 
  • Upbeat China data weighs over the US dollar. 
  • Weak tone in the US stock futures caps gains. 

EUR/USD looks set to end the holiday-shortened trading week on a positive note, with the US dollar trading under pressure across the board. 

The currency pair is currently hovering near 1.1925, representing a 0.58% gain on the week. 

On a daily basis, the pair is up just 0.10%. The upbeat China data released in Asia looks to be drawing offers for the US dollar. In a sign of impressive recovery from coronavirus slowdown, China’s industrial profits rose for the sixth straight month in October, and at the fastest rate in nine years. 

However, the upside is likely being capped by doubts over drugmaker AstraZeneca’s coronavirus vaccine and losses in the US stock futures. Risk assets have put in a positive performance this month, pushing the haven assets such a dollar and gold lower on hopes of swift global economic recovery on potential coronavirus vaccines. 

Should the risk aversion worsen in Europe, the pair could erase marginal gains seen at the time of writing. Data wise, the focus would be on the German Import Price Index and Eurozone’s Services Sentiment, Consumer Confidence, and Industrial Confidence indices. Comments from the German Bundesbank President Weidmann and European Central Bank (ECB) member Panetta could also influence the pair. 

The policymakers are likely to talk dovish and bolster expectations for additional easing by the ECB in December. 

Technical levels

 

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