- EUR/USD pushes higher and trades closer to 1.1300.
- Spanish unemployment rose by more than 5K in June.
- US Initial Claims, Non-farm Payrolls next of tap in the calendar.
The better mood in the shared currency is extending for the second session in a row and is now pushing EUR/USD to challenge weekly tops near 1.13 the figure.
EUR/USD focused on data, risk trends
EUR/USD is adding to Wednesday’s losses in the vicitnity of the 1.1300 mark in the second half of the week, always against the backdrop of the improved sentiment in the risk-associated universe.
In fact, the combination of news that a COVID-19 vaccine could be out soon plus further progress in the re-opening of the economy in Europe have bolstered investors’ preference for riskier assets in the last couple of sessions. The improvement in the risk sentiment comes in spite of fresh coronavirus outbreaks in many countries and the relentless advance in the US.
Data wise in Euroland, Spanish unemployment rose by more than 5K during June, confirming the downtrend since March’s tops near 302K. In Italy, the jobless rate ticked higher to 7.8% in May. Later, Producer Prices and the jobless rate in the broader euro bloc are due.
Across the pond, all the attention will be on the release of June’s Non-farm Payrolls, the Unemployment Rate and Factory Orders.
What to look for around EUR
EUR/USD remains well supported around the 1.1170 region so far. In the meantime, investors continue to gauge the gradual and relentless re-opening of the economy in Europe against the possibility of a second wave of contagion (as per new coronavirus outbreaks around the world). The constructive view in the euro, however, remains well sustained by the improvement of some fundamentals in the region, in turn propped up by persistent (and massive) monetary stimulus by central banks. On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.
EUR/USD levels to watch
At the moment, the pair is advancing 0.36% at 1.1291 and a breakout of 1.1348 (weekly high Jun.23) would target 1.1422 (monthly high Jun.10) en route to 1.1495 (2020 high Mar.9). On the other hand, immediate contention emerges at 1.1168 (monthly low Jun.19) seconded by 1.1147 (high Mar.27) and finally 1.1036 (200-day SMA).
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