EUR/USD fades part of the earlier advance to the 1.0350 region.GThe European currency extends the recent optimism and lifts EUR/USD to the 1.0350 zone on Wednesday, where some initial resistance appears to have turned up.
EUR/USD focuses on the Fed, data.EUR/USD advances for the second session in a row so far against the backdrop of renewed selling pressure in the greenback, which also appears weighed down by the lack of traction in US yields.
In the German debt market, the key 10-year bund yields remain flat-lined just below the 2.0% yardstick.There is no meaningful reaction in the pair to the mixed results from the advanced PMIs in both Germany and the broader Euroland for the month of November. Indeed, the Manufacturing PMI is expected at 46.7 (from 45.1) in Germany and 47.3 (from 46.4) in the euro bloc, while the Services gauge is seen at 46.4 (from 46.5) and 48.6 (from 48.6), respectively.
Later in US docket, all the attention is expected to gyrate around the publication of the FOMC Minutes, seconded by Initial Claims, Durable Goods Orders, flash PMIs, New Home Sales and the final Consumer Sentiment.What to look for around EUR
EUR/USD trades on a firm note and reaches the mid-1.0300s, as cautiousness keeps the dollar under the microscope ahead of the release of the FOMC Minues.
In the meantime, the European currency is expected to closely follow dollar dynamics, geopolitical concerns and the Fed-ECB divergence. In addition, markets repricing of a potential pivot in the Fed’s policy remains the exclusive driver of the pair’s price action for the time being.
Back to the euro area, 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 – emerges as an important domestic headwind facing the euro in the short-term horizon.
Eminent issues on the back boiler: Continuation of the ECB hiking cycle vs. increasing recession risks. Impact of the war in Ukraine and the persistent energy crunch on the region’s growth prospects and inflation outlook. Risks of inflation becoming entrenched.
EUR/USD levels to watch
So far, the pair is gaining 0.09% at 1.0312 and faces the next up barrier at 1.0395 (200-day SMA) ahead of 1.0481 (monthly high November 15) and finally 1.0500 (round level). On the flip side, a breach of 1.0222 (weekly low November 21) would target 1.0023 (100-day SMA) en route to 0.9935 (low November 10).
EUR/USD holds above 1.0300 after German and EU PMI data
EUR/USD continues to trade in positive territory above 1.0300 after the data from Germany and the EU showed that the business activity in the private sector contracted at a softer pace than expected in early November. Investors await US PMI surveys and FOMC Minutes.
GBP/USD steadies near 1.1900 after UK data
GBP/USD holds its ground and continues to fluctuate in a narrow range at around 1.1900 on Wednesday. The data from the UK showed that the S&P Global Composite PMI edged higher to 48.3 in early November from 48.2 in October. Eyes on US data dump, FOMC Minutes.
Gold tests three-day low at around $1,730 as US Dollar decline stalls
Gold price has dropped to near three-day’s low around $1,730.00 ahead of FOMC minutes. The precious metal has sensed selling pressure after testing the 23.6% Fibo retracement at $1,746.67. The risk impulse is displaying mixed responses ahead of the Fed minutes.