- EUR / USD is moving higher and testing the 1.2140 region at new 32-month highs.
- Vaccine news and stimulus hopes keep the pair rising.
- The German and eurozone services PMIs remain within contraction territory.
The bullish momentum in the common currency remains firm and lifts EUR / USD to new 32-month highs at 1.2140.
EUR / USD driven by risk appetite in the market
EUR / USD extends the move higher well above the key barrier of 1.21 on Thursday, as investor appetite for riskier assets remains strong, weighing on the safe-haven USD.
In fact, the growing rumors of additional fiscal / monetary stimulus in the US under the Biden administration, combined with the optimism derived from a COVID-19 vaccine Indeed, they continue to shore up investors’ appetite for risk in recent weeks, all to the detriment of the dollar.
Regarding economic data, the final services PMI for November in the core of the eurozone (France, Germany and the eurozone in general) remained within contraction territory (below the 50 point level). Retail sales in the euro zone grew 1.5% monthly in October, above the 0.8% expected. On an annual basis, retail sales increased 4.3%, exceeding 2.5% previously and 2.7% expected.
On the other side of the Atlantic, the release of initial weekly jobless claims will focus investors’ attention at the start of the American session, followed by ISM’s non-manufacturing PMI and Markit’s final services PMI, both for the month of November.
What can we expect around the EUR?
Another day, another high on the EUR / USD. In fact, this time the pair has managed to leave behind the 1.2100 barrier and has approached levels last seen in April 2018 near 1.2140, always in the context of a favorable sentiment to the appetite for risk. In the very short term, EUR / USD appears 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 increasing chances of further ECB monetary easing measures being announced as early as the December meeting.
EUR / USD levels
At the time of writing, the EUR / USD pair is down 0.01% on the day, trading at 1.2102. The next support is at 1.1920 (November 9 high), followed by 1.1800 (November 23 low) and 1.1745 (November 11 low). On the other hand, a breakout of 1.2139 (December 3 high) would target 1.2413 (April 17, 2018 high) on the way to 1.2476 (March 27, 2018 high).
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
