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EUR / USD sets new daily highs at 1.1580 zone

  • DXY gives 0.10% and continues to retreat from highs in one year.
  • EUR / USD continues to bounce from this year’s lows.
  • Beginning of the week with limited tours in the currencies.

The EUR / USD gained momentum taking advantage of the weakness of the dollar and rose to 1.1582, reaching the highest level since Thursday and extending the recovery after falling to 1.1512 on Friday, the lowest in a year.

The gains on Monday are being driven by the weakness of the dollar throughout the market. The DXY rises 0.10% and operates at 94.15, falling back for the second day in a row. At the same time, Treasury bond yields do not show large variations. The 10-year rate is at 1.48%, away from Friday’s low.

On the other hand, gains in equity markets are contributing to some weakness in the dollar. On Wall Street, Dow Jones futures point to a positive open with gains around 0.30% and 0.15% for the S&P 500.

With regard to data, there was a rise in the Eurozone consumer confidence indicator in November from 16.9 to 18.3, below the 18.6 expected. For later on Monday, a speech by Jerome Powell, the chairman of the Federal Reserve, stands out. It is not expected to pronounce on monetary policy.

The producer price index will be published in the US on Tuesday and the consumer price index on Wednesday. Are inflation figures may be key for the formation of future expectations for monetary policy.

From a technical point of view, the EUR / USD maintains a negative dominant tone, but continues to hold the support at 1.1520 / 30. A firm break from this level would enable further losses. While on the upside, above 1.1580 the euro would be positioned for more rises, with resistance at 1.1615 and then at 1.1665.

Technical levels

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