The EUR/USD pair is trading around the 1.1800 level, consolidating Monday gains, but struggling to extend gains beyond the mentioned 1.18 mark. ECB’s President, Christine Lagarde, expressed concerns about the economic recovery while US Federal Reserve’s chief Powell is set to speak about the US economic outlook, FXStreet’s Chief Analyst Valeria Bednarik reports.
See – EUR/USD: Above 1.1770/84 suggests the correction is over – Credit Suisse
Key quotes
“EUR/USD eased towards a daily low of 1.1764 mid-European morning, following comments from ECB’s President, Christine Lagarde, who expressed concerns about the economic recovery, saying that she fears that instead of a V-shaped recovery, the rebound would be shakier. Nevertheless, the pair quickly recovered from such a low, to put pressure on the 1.1800 threshold.”
“Talks between House Speaker Pelosi and Treasury Secretary Mnuchin about a US fiscal stimulus package continue. According to some reports, negotiations are going ‘very slowly,’ although talks will continue later today. Later today, US Federal Reserve Chief Powell will speak about the US economic outlook at the National Association of Business Economics annual meeting.”
“The 4-hour chart shows that it´s struggling with a mildly bearish 200 SMA, but above the shorter ones. Technical indicators, in the meantime, head firmly higher, approaching overbought readings. Further gains are to be expected on a break above 1.1810, the immediate resistance.”
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