- Euro rises again against the dollar, watch closely at 1.1400.
- DXY falls for the second day, turns negative for the current week.
- Markets await US retail sales data and FOMC minutes.
EUR/USD continues to recover ground after dipping below 1.1300 in the beginning of the week and is close to 1.1400, with a bullish tone in the previous US data and the American session.
Follow the rebound, 1.1400 in sight
The EUR/USD advance extended in the European session to 1.1395, from where it pulled back, contained by 1.1370. The pair remains near 1.1400, with the tone bullish. A drop below 1.1360, where the 20-hour SMA is, could change the intraday bias to neutral/negative.
The euro’s advance continues to be driven in part by a strength in the common currency, to which is added on Wednesday, a decline in the dollar. The DXY loses 0.17%even despite the stability of Treasury bond yields, close to recent highs, and the modest decline in equity markets.
Volatility could remain high, considering the market environment. The situation on the Ukrainian border has eased but the crisis is not far behind. With regard to economic data, a higher than expected rise in industrial production in the Eurozone was known in December. The data that may have an impact on the market is the one that will be known at 13:30 GMT with the US retail sales figures for January. Later there will also be the report on industrial production, inventories and the NAHB index of the real-estate market. Neel Kashkari, president of the Minneapolis Fed will speak in public.
In the afternoon of the American session, the Booking Federal will publish the minutes of the last FOMC meeting, which will be closely watched by traders and will add noise to trading.
Technical levels
Source: Fx Street
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