- EURUSD rises for the second day in a row but loses momentum.
- After posting a one-week high at 1.0006, it pulls back towards 0.9970.
- The dollar remains weak due to the rise in the stock markets.
The EURUSD continues to rebound sharply from the 0.9750 zone and reached as high as 1.0006 on Monday, the highest level since October 27. After failing to assert on parity lost momentum and fell back towards 0.9970. The tone remains bullish in the very short term, supported by the weakness of the dollar and the rise in the stock markets.
The dollar’s decline that began after the US jobs report extended on Monday, giving EURUSD a lift. On the first attempt, the pair failed to assert itself above the parity level, but continues to keep an eye on that area. A confirmation above would enable more raises. If not, the euro could lose momentum, enabling further declines. Supports are seen at 0.9950 and then the 0.9905 area.
Quiet Monday, before elections and inflation data
With regard to economic data, there was a rise in exports to imports of China lower than expected in October. The impact of this was limited as equity markets closed higher in Asia, higher in Europe and Wall Street futures point to a positive open.
Germany’s industrial production rose 0.6% in September, against expectations of a 0.8% drop. The Sentix Investor Confidence index improved in November more than expected from -38.3 to -30.9. There will be no relevant data from the US on Monday, and the focus could shift to speeches by officials from the Federal Reserve (Mester, Barkin and Collins). On Tuesday will be the mid-term elections in the US and on Thursday the consumer price index will come out.
Technical levels
Source: Fx Street
