EUR / USD stabilizes around 1.1330 before US data.

Get real time updates directly on you device, subscribe now.

  • The dollar with some weakness to improve the mood of the financial markets.
  • EUR / USD far from risk zone, but without clear direction.

EUR / USD is trading unchanged significantly after Tuesday’s sharp drop and subsequent rebound. The pair operates near 1.1330, after having marked lows for the day just above 1.1300 and a high for the day at 1.1359 at the start of the European session.

Equity markets are recovering after Tuesday’s sharp drop following comments from the president of the Federal Reserve, on the prospects for monetary policy. His words pointed to the possibility of accelerating the monetary adjustment after the rise in inflation. This caused a rise in the yields of Treasury bonds and the dollar.

The greenback on Wednesday looks stable for now. Traders continue to analyze Powell’s words. On Wednesday there will be important data with the private sector employment ADP report and the IHS Markit and ISM manufacturing. In the afternoon it will be the turn of the Fed’s Beige book. On Thursday it will be the turn of the unemployment benefit requests and on Friday the official employment report for November. Powell y Yellen they will present again before a congressional committee.

Regarding the Eurozone, it was known that the Markit Manufacturing PMI for November finally stood at 58.4, below the 58.6 previously reported.

Short-term outlook

The EUR / USD maintains a positive bias in the short term, after having been able to recover on Tuesday back above the average of 20 in four hours. This level is passing through 1.1300, which also coincides with the minimum area of ​​the day. A fall below this level will leave the euro weak. If it continues above, the resistance to watch will be 1.1350. If settling above, the focus will shift to week highs at 1.1380 / 85.

Technical levels


Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.