EURUSD extends the move higher just above parity.The dollar remains on the defensive amidst mixed US yields.
The buying interest around the European currency remains well and sound and motivates EURUSD to revisit the parity zone at the beginning of the week.EURUSD stronger on USD-selling.
EURUSD advances for the second session in a row and gains more than two cents since last week’s lows around 0.9730, always against the backdrop of the persistent sell-off in the greenback.
Indeed, the dollar remains offered as market participants continue to gauge the mixed results from Friday’s US Payrolls as well as recent Fedspeak leaning towards an impasse in the Fed’s normalization process.The continuation of the move higher in the pair so far comes in line with the mixed performance in US yields and some loss of momentum in the German 10-year bund yields after two daily advances in a row.
Earlier in the session, Germany’s Construction PMI rose to 43.8 in October and the Investor Confidence in the euro area improved to -30.9 for the current month according to the Sentix Index.
What to look for around EUR
EURUSD extends Friday’s recovery and confronts the initial target at the parity region so far on Monday.
In the meantime, price action around the European currency is expected to closely follow dollar dynamics, geopolitical concerns and the Fed-ECB divergence. The recent decision by the Fed to hike rates and the likelihood of a tighter-for-longer stance now emerges as the main headwind for a sustainable recovery in the pair (if it was any at all).
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 fragile sentiment around the euro in the longer run.
EURUSD regains parity as US Dollar resumes decline
EURUSD is extending recovery to fresh 2-week highs above parity amid a better market mood in Monday. The US Dollar resumes the downside momentum amid worries over the Fed downsizing interest rates.
GBPUSD extends rally, closes in on 1.1500
GBPUSD has extended its daily rally toward 1.1500 in the second half of the day on Monday as the US Dollar continues to lose interest. In the absence of high-impact macroeconomic data releases, the upbeat market mood is fueling the pair’s advance.
Gold consolidates gains and aims for a higher high
Gold neared its Friday’s peak of $1,681.95 after an intraday slide to $1,666.82, now holding on to modest intraday gains. The dollar started the day on the back foot as the market mood improved at the beginning of the week and ahead of the release of US inflation figures.