- The EUR/USD pair continues its bullish trajectory, taking advantage of the weakening US Dollar, and is trading around 1.0942.
- Falling US Treasury bond yields act as a significant factor undermining the US Dollar, aiding the strength of the Euro.
- Possible rate cuts from the Federal Reserve support EUR/USD.
- Top members of the ECB Governing Council oppose rate cuts.
The common currency continues to gain ground against the Dollar on Monday, which remains weighed down by declining US Treasury yields, providing a headwind for the Dollar. Although the economic outlook in the Eurozone (EU) is pessimistic, the recovery of the EUR/USD continues, supported by a weak US dollar. At the time of writing, EUR/USD is trading at 1.0942, with buyers targeting the 1.1000 figure by the end of the week.
Euro advances against Dollar as market participants await crucial economic releases
The US dollar remains weak for the second consecutive day of trading. The Dollar Index (DXY), which measures the value of the Dollar against six currencies, fell 0.34% to 103.46 and remains the main reason for the strength of the Euro (EUR). According to the futures market, the latest inflation report in the United States (US) has increased the chances that the Federal Reserve (Fed) will cut rates next year.
The minutes of the latest meeting of the Federal Reserve Open Market Committee (FOMC) will be published on Tuesday. Jobless claims will be released on Wednesday, followed by the Chicago Fed’s national activity index and preliminary PMI numbers for November.
On the other side of the pond, the EU’s agenda will include the November PMIs, Germany’s IFO survey and the minutes of the latest meeting of the European Central Bank (ECB).
As for central banks, ECB member Hernández de Cos said the current level of rates should be sufficient, while Wunsch stressed that bets on a rate cut could trigger another hike by the central bank. The EU. The president of the Bundesbank and member of the Governing Council of the ECB, Joachim Nagel, was against rate cuts, while Holtzmann stated that the ECB is prepared for additional tightening, “if necessary.”
EUR/USD technical levels
|Latest price today||1.0946|
|Today I change daily||0.0037|
|Today’s daily variation||0.34|
|Today’s daily opening||1.0909|
|Previous daily high||1.0909|
|Previous daily low||1.0825|
|Previous weekly high||1.0909|
|Previous weekly low||1.0665|
|Previous Monthly High||1.0695|
|Previous monthly low||1.0448|
|Daily Fibonacci 38.2||1.0877|
|Fibonacci 61.8% daily||1.0857|
|Daily Pivot Point S1||1.0853|
|Daily Pivot Point S2||1.0797|
|Daily Pivot Point S3||1.0768|
|Daily Pivot Point R1||1.0937|
|Daily Pivot Point R2||1.0965|
|Daily Pivot Point R3||1.1021|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.