EUR/USD adds to the weekly uptrend and approaches 1.1000.The buying interest around the European currency remains well and sound and motivates EUR/USD to edge a tad higher and flirt with the 1.0980 region on Wednesday.
EUR/USD appears bid ahead of data.EUR/USD extends the upside in place since the beginning of the week and with the next target at the key round level at 1.1000 the figure, always amidst the generalized flattish mood in the global markets and the lack of direction in the dollar.
Indeed, some consolidation as well as rising cautiousness seem to kick in ahead of key data releases – especially Friday’s US Nonfarm Payrolls – and against the backdrop of a shortened trading week due to Easter holidays.
In addition, the ECB-Fed divergence keeps bolstering the pair’s upside, particularly aft the JOLTs report on Tuesday reignited speculation of a likely pause at the Fed’s May event.
What to look for around EUR
EUR/USD keeps the rally well and sound and a potential test of the key 1.1000 mark already emerges on the horizon.
In the meantime, price action around the single currency should continue to closely follow dollar dynamics, as well as the incipient Fed-ECB divergence when it comes to the banks’ intentions regarding the potential next moves in interest rates.
Moving forward, hawkish ECB-speak continue to favour further rate hikes, although this view appears in contrast to some loss of momentum in economic fundamentals in the region.
EUR/USD levels to watch
So far, the pair is gaining 0.01% at 1.0951 and a break above 1.0973 (monthly high April 4) would target 1.1032 (2023 high February 2) en route to 1.1100 (round level). On the flip side, the next support comes at 1.0788 (monthly low April 3) followed by 1.0745 (55-day SMA) and finally 1.0712 (low March 24).
EUR/USD holds lower ground near 1.0950 ahead of key US data
EUR/USD is trading modestly flat at around 1.0950 in early Europe, having failed to sustain at higher levels. The pair is weighed down by the pullback in the US Dollar alongside the US Treasury bond yields, investors await the US ADP and ISM Services PMI data for a fresh move.
GBP/USD retreats toward 1.2450 amid damp mood
GBP/USD is easing from ten-month highs of 1.2510, heading toward 1.2450 ahead of the key US/UK data on Wednesday. A cautious market mood is offering support to the safe-haven US Dollar. Dovish BoE commentary adds to the downside in Cable.
Gold bulls cheer $2,010 breakout, US data eyed
XAU/USD slowly pushes its northward limits to $2,025 as it renews the 13-month high amid broad USD weakness. Gold benefits from the market’s indecision amid hawkish Fed talks and receding market bets on the aggressive rate hikes by the US central bank.
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