EUR / USD, rejected at 1.1625, is approaching one-week lows at 1.1590

  • The euro retreats from 1.1625, back towards 1.1600.
  • The optimistic US figures cause the dollar to rebound.
  • EUR / USD is expected to fall below 1.1600 after the ECB – Scotiabank meeting.

The EUR’s bullish attempt during the European trading session has been short-lived. The pair EUR/USD it failed at 1.1625 to give away gains following the release of US home sales and manufacturing data, returning to just below 1.1600 and approaching the 1.1590 support area.

The US dollar appreciates thanks to optimistic macroeconomic data

A series of better-than-expected figures in the US has strengthened a hitherto weaker dollar, thwarting the docile attempt at a euro recovery supported by positive market sentiment and the pause in the rally in US Treasuries. USA

New home sales in the United States rose 14% in September to a six-month highest rate of 800,000 units, beating market expectations of 620,000 units. However, the median price accelerated 18.7% year-on-year and remains at levels above $ 400,000, hampering the chances of first-time buyers.

Additionally, the Richmond Fed Manufacturing Index improved to 12 from -3 in the prior month, well above the 3 analyst forecast reading. All components of the index, shipments, new orders and employment have improved this month, easing concerns about the impact of supply disruptions.

The US dollar has recovered thanks to these publications, although the main currency crosses remain contained within the previous ranges, with all eyes on monetary policy decisions and the US GDP figures, which will be released later this year. week.

EUR / USD: ECB’s dovish decision to push pair back to 1.1600 – Scotiabank

Scotiabank’s currency analysis team expects the pair to close below 1.1600 this week, weighed down by a dovish ECB: “Even a moderately less dovish statement will be in stark contrast to next week’s Fed decision, so the The profit margin for the EUR is limited and selling the currency at a post-ECB profit is the most sensible strategy. “

Technical levels

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