. EUR/USD underpinned by the EUR/JPY cross driven strength.
· US dollar index trades subdued amid US-China trade optimism.
· Eyes on Eurozone/ US data amid all-important trade talks.
EUR/USD is seen consolidating small gains on the 1.10 handle amid a quiet Asian affair, with the focus now shifting on the Eurozone inflation and US Retail Sales data for fresh trading impetus. However, the US-China trade headlines will continue to remain the main market motor.
EUR/USD: Bulls eyeing a break above 10-DMA at 1.1043?
The main currency pair clung onto its recent recovery gains near 1.1030 levels so far this Friday, as it keeps its range trade intact heading into the European open. Meanwhile, the further upside appears capped by the US-China trade optimism induced rebound in the US Treasury yields as well as by the looming Euro area growth concerns. On the other hand, the bulls remain underpinned by the EUR/JPY cross driven strength amid the risk-recovery.
The Yen crosses were sold-off into the renewed optimism on the US-China trade front after the White House Economic Adviser Kudlow’s comments hint at the US-China trade deal progressing. EUR/JPY gains +0.20% to trade near 119.80 region so far. Further, a broadly subdued US dollar, in the wake of reduced safe-haven demand, also adds to buoyant tone seen around the spot. The USD index meanders in four-day lows of 98.11, almost unchanged on the day.
Markets now look forward to the Eurozone Final CPI and US Retail Sales data for some near-term trading impetus while key US-China trade talks due later on Friday will determine the next price-move in the pair. In the meantime, the 10-DMA barrier at 1.1043 will continue to cap the recovery gains while the downside could be limited by the monthly lows reached on Thursday at 1.0989.
Share
