EUR/USD keeps the optimism well and sound near 0.9870.The buying interest in the single currency gathers extra impulse and lifts EUR/USD to the area of multi-session highs past 0.9870 on Tuesday.
EUR/USD stronger on USD-selling, risk appetite.EUR/USD remains well bid in the upper-0.9800s as the selling pressure around the greenback seems to have picked extra pace on Tuesday.In addition, the prevailing risk-on mood continues to support the pair’s upside bias despite German yields now give away initial gains and return to the negative territory, adding to Monday’s decline.
Extra support for the European currency also came after the Economic Sentiment measured by the ZEW institute in Germany and the Euroland unexpectedly came in above estimates in October, reversing at the same time the previous downtrend.In the US, Industrial Production expanded at a monthly 0.4% in September and 5.3% from a year earlier. Next in the calendar comes the NAHB Index, TIC flows and the speech by Minneapolis Fed N.Kashkari (2023 voter, dove).
What to look for around EUR
EUR/USD remains in recovery-mode and now set sails to the 0.9900 neighbourhood amidst faltering price action surrounding the dollar.
In the meantime, price action around the European currency is expected to closely follow dollar dynamics, geopolitical concerns and the Fed-ECB divergence. Following latest results from key economic indicators, the latter is expected to extend further amidst the ongoing resilience of the US economy.
Furthermore, the increasing speculation of a potential recession in the region – which looks propped up by dwindling sentiment gauges as well as an incipient slowdown in some fundamentals – adds to the sour sentiment around the euroGBP/USD regains 1.1300 post-BOE headlines
GBP/USD stands above 1.1300 and not far from its daily high, as the US Dollar remains on the back foot. The better tone of global equities and stable government bond yields weigh on the greenback.
EUR/USD holds steady around 0.9850 after mixed ZEW
EUR/USD is keeping its range around 0.9850, as the mixed Germany and Eurozone ZEW sentiment data fail to impress. The pair quietly consolidates as a better market mood falls short of boosting the EUR.
USD/JPY resumes advance after a short-lived knee-jerk
USD/JPY trades back above 149.00, at its highest in three decades, quickly erasing a slide towards 148.11. Market players suspect a Japanese intervention, although there was no official word on it. Meanwhile, USD resumes its advance as Treasury yields hold near weekly highs.
Gold retreats to $1,650 level amid a pickup in USD demand
Gold struggles to capitalize on its early uptick amid the emergence of some USD dip-buying. Growing recession fears offer some support to the XAU/USD and helps limit the downside.