- EUR / USD extends the move higher to the 1.2170 / 75 region.
- German factory orders expanded 2.9% month-on-month in October.
- The US Non-Farm NFP Payrolls will focus investors’ attention at the start of the American session.
The common currency spreads the optimistic sentiment and raises the EUR / USD pair to the region of 1.2170 during the European session on Friday.
EUR / USD focuses attention on data
The EUR / USD advances for the fourth day in a row on Friday and manages to register new 32-month highs in the area of 1.2170 / 75.
In fact, Hopes for a strong global recovery continue to be supported by rising expectations of further US fiscal stimulus and prospects for an effective vaccine against the coronavirus in a relatively short time.
In the economic calendar of the euro, German factory orders expanded above estimates, up 2.9% month-on-month during October.
Across the Atlantic, the release of the NFP jobs report will be the highlight at the start of the American session, followed by data on factory orders, the US trade balance and speeches by C. Evans and M. Bowman of the FOMC.
What can we expect around the EUR?
The EUR / USD continues to move up steadily and gradually approaches the barrier of the 1.2200 level, always against the background of a favorable sentiment in risk appetite in the markets. In the very short term, EUR / USD appears to be supported by prospects for a strong recovery in the region coupled with the increasing likelihood of additional stimulus in the US The risks of this positive sentiment stem from possible political turmoil around the EU Recovery Fund and the growing chances of further easing measures from the ECB being announced as early as the December meeting.
EUR / USD levels
At the time of writing, the EUR / USD pair is gaining 0.25% on the day, trading at 1.2169. A breakout of 1.2174 (December 4 high) would target 1.2413 (April 17, 2018 high) en route to 1.2476 (March 27, 2018 high). On the downside, the next support is at 1.1920 (November 9 high), followed by 1.1800 (November 23 low) and finally 1.1745 (November 11 low).
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