- EUR/USD moves higher to the vicinity of the 1.1100 handle.
- US Philly Fed index came in above estimates in November.
- EC’s Consumer Confidence next on the docket.
EUR/USD keeps the firm note so far in the second half of the week and managed to advance to fresh weekly highs in levels just shy of the 1.1100 mark earlier in the session.
EUR/USD up on trade hopes
Spot continues to reverse Wednesday’s pullback although the bullish attempt has run out of steam at the very doorsteps of 1.1100 the figure.
The earlier move up was on the back of positive headlines from the US-China trade front, as rumours were citing the probability that the December tariffs could be delayed at the same time when Chinese and US negotiators are assessing the idea of resuming trade talks.
On the docket, the minutes of the latest ECB meeting noted members advocated for patience following the restart of the QE programme, although they acknowledged the precarious outlook on both the global and domestic economy. Later in the session, the European Commission is expected to release its measure of Consumer Confidence.
Across the ocean, the Philly Fed manufacturing index came in above estimates at 10.4 for the month of November, while Initial Claims once again rose above forecasts at a weekly 227K.
What to look for around EUR
Spot met strong resistance in the 1.1080/90 band for the time being while it keeps looking to USD-dynamics and headlines from the US-China trade front for direction. On the macro view, the outlook in Euroland remains fragile and does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the bearish view on the single currency in the medium term at least. In this regard, all the looks will be upon the release of November’s preliminary PMIs later in the week.
EUR/USD levels to watch
At the moment, the pair is gaining 0.01% at 1.1072 and faces the next hurdle at 1.1097 (monthly high Nov.21) followed by 1.1173 (200-day SMA) and finally 1.1179 (monthly high Oct.21). On the downside, a break below 1.0989 (monthly low Nov.14) would target 1.0925 (low Sep.3) en route to 1.0879 (2019 low Oct.1).
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