- EUR/USD gains extra upside and approaches 1.19 on Friday.
- Advanced EMU GDP, inflation figures next of relevance in the docket.
- US PCE, Personal Income/Spending, Consumer Sentiment coming up later.
The rally in the European currency stays everything but abated and is no pushing EUR/USD back to the vicinity of 1.1880, a tad below earlier tops just above 1.1900.
EUR/USD eases from tops above 1.19
EUR/USD briefly moved above 1.19 the figure during early trade, area last visited in May 2018, and always against the backdrop of the unremitting sell-off in the greenback.
Indeed, fresh US political jitters have emerged in past hours after President Trump hinted at the idea that the November elections could be postponed on potential fraud concerns. The US Senate, however, has quickly ruled out that plan, saying that such a measure needs to be passed in Congress.
Also weighing on the buck, recent GDP figures showed a historical slump in the economic activity during the second quarter, while the labour market remains deteriorated (as per recent Claims figures).
In the docket, and closer to home, advanced inflation figures tracked by the CPI for the month of July are due seconded by flash GDP figures for the April-June period. Across the pond, June’s PCE will take centre stage along with Personal Income/Spending, the Chicago PMI and the U-Mich gauge.
What to look for around EUR
EUR/USD recorded fresh tops just above the 1.19 yardstick at the end of the week, confirming once again the solid momentum around both the single currency and the rest of its risky peers. The sharp move up, while largely triggered by dollar-selling, has found extra sustain in auspicious results from the domestic docket, in turn supporting further the view of a strong economic recovery following the coronavirus fallout. Also lending wings to the momentum around the euro, the recently clinched deal on the European Recovery Fund helped putting political fears within the region to rest (for now), while the solid position of the current account in the region adds to the rally.
EUR/USD levels to watch
At the moment, the pair is gaining 0.17% at 1.1867 and a breakout of 1.1909 (2020 high Jul.31) would target 1.1996 (high May 14 2018) en route to 1.2032 (23.6% Fibo of the 2017-2018 rally). On the downside, immediate contention emerges at 1.1709 (38.2% Fibo of the 2017-2018 rally) followed by 1.1495 (monthly high Mar.9) and finally 1.1448 (50% Fibo of the 2017-2018 rally).
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