EUR/USD remains on the defensive below 1.0500, moves little post-German Factory Orders.

EUR/USD struggles to capitalize on its intraday uptick amid some buying around the USD.The better-than-expected German Factory Orders data also does little to provide impetus.

The fundamental backdrop supports prospects for some meaningful corrective pullback.The EUR/USD pair surrenders its modest intraday gains to the 1.0520 area and refreshes the daily low during the early European session. Spot prices remain on the defensive below the 1.0500 psychological mark and move little following the release of better-than-expected German data.

The latest data published by the Federal Statistics Office showed that German Factory Orders rose 0.8% in October against the 0.2% decline estimated and the 4.0% fall recorded in the previous month. The data, however, did little to impress bullish traders or provide any meaningful impetus to the EUR/USD pair amid some follow-through US Dollar buying.

In fact, the USD Index, which measures the greenback’s performance against a basket of currencies, is seen building on the overnight bounce from over a five-month low and acts as a headwind for the EUR/USD pair. The incoming stronger US economic data fuels speculations that the Fed may raise interest rates more than projected and offers support to the USD.

Against the backdrop of the upbeat US monthly jobs report released on Friday, the Institute for Supply Management (ISM) reported on Monday that the US Service PMI unexpectedly climbed to 56.5 in November. This points to a resilient US economy, despite rising borrowing costs, and validates expectations that the Fed will continue to tighten its monetary policy.

Furthermore, the recent less hawkish remarks by European Central Bank (ECB) policymakers, backing the case for a 50 bps rate hike in December, favour the EUR/USD bears. That said, it will still be prudent to wait for strong follow-through selling before confirming that spot prices have topped out in the near term amid a relatively thin US economic docket.

EUR/USD hovers around 1.0500 amid choppy USD trading

EUR/USD is holding steady at around 1.0500, as traders await more clues in the European session. The US Dollar extends its choppy trading amid a negative shift in the market’s risk perception and hawkish Fed tightening view. 


GBP/USD battles 1.2200 amid cautious mood

GBP/USD remains stuck in a narrow range around 1.2200, as traders turn cautious in early Europe. Risk-off flows seep back and keep the safe-haven US Dollar afloat. The greenback also cheers the robust US data and renewed hawkish Fed outlook. 


Gold rebound eyes $1,800 as US inflation expectations probe Fed hawks

Gold price bounces off the one-month-old support line to pare the biggest daily loss in 10 weeks. US inflation expectations challenge hawkish hopes from Federal Reserve. Optimism surrounding China adds strength to XAU/USD recovery.

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