- Euro bounces against the dollar, and is back near 1.2000.
- The dollar shows no clear direction on Tuesday, stocks rise.
The EUR / USD rose to 1.1984 hours ago reaching a new high for the day. It then made a pullback and is trading around 1.1965, in positive territory and rebounding after Monday’s slide, when it fell back after approaching 1.2000.
The euro is among the currencies that rose the most on Tuesday, while the dollar presented mixed results. The DXY hit year lows at the start of the European session, but then regained some of the lost ground and is back above 91.70. Compared to currencies linked to commodities and emerging markets, the dollar does not show significant changes.
The dollar was partly weakened by the better mood in the markets. Wall Street futures point to a positive open with gains in the order of 1%. This occurs after economic data from Asia and the Eurozone, and the advance in vaccines for the coronavirus.
Market optimism was keyed by positive PMI data from Asia. In the Eurozone, they showed some slowdowns as a result of the new restrictions on coronavirus cases, but with data around expectations. In the US IHS Markit PMI figures will be released for November at 14:45 GMT. Another relevant event in the next few hours will be the presentation of the Chairman of the Federal Reserve, Jerome Powell and the Secretary of the Treasury, Steven Mnuchin before a Senate committee.
From a technical point of view, EUR / USD maintains the uptrend and also holds above the key zone of 1.1900. As long as it remains above that level, the possibility of further tests at 1.2000 will be on the table. A drop below 1.1900 could draw strength from the euro, favoring a correction.
Technical levels
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