EUR/USD:FUNDAMENTALS+TECHNICAL ANALYSIS | TRIGGER | LONG đź””
EUR/USD remains bid, extends the upside beyond 1.0800
EUR/USD adds to Tuesday’s gains and tests 1.0840.
The dollar trims gains after following recent cycle peaks.
Germany Producer Prices rose more than expected in March.
The single currency keeps enjoying the renewed optimism and now pushes EUR/USD to new multi-day highs in the vicinity of 1.0850 on Wednesday.
EUR/USD looks to yields, USD
EUR/USD advances for the second session in a row and extends the recent breakout of the 1.0800 barrier midweek.
Further gains in spot come on the back of the renewed offered bias in the buck along with the corrective move in US yields. On the latter, the German 10y benchmark yields give away some gains after trading near the psychological 1.00% hurdle on Tuesday, an area last visited back in mid-July 2015.
In the domestic calendar, Germany’s Producer Prices rose at a monthly 4.9% in March and 30.9% over the last twelve months. In addition, the trade deficit in the broader Euroland shrank to €7.6B in February and Industrial Production expanded 2.0% YoY also in the same period.
Later in the session, Mortgage Applications and Existing Home Sales are due across the pond, while FOMC’s Evans and Daly are also due to speak.
What to look for around EUR
EUR/USD regains some composure and trespasses 1.0800, putting further distance from last week’s new 2022 lows in the mid-1.0700s in the wake of the ECB event. Despite the ongoing bounce, the outlook for the pair remains well into the bearish side for the time being, always in response to dollar dynamics and geopolitical concerns. As usual, occasional pockets of strength in the single currency should appear reinforced by speculation the ECB could raise rates before the end of the year, while higher German yields, elevated inflation, the decent pace of the economic recovery and auspicious results from key fundamentals in the region are also supportive of a rebound in the euro.
Key events in the euro area this week: EMU Balance of Trade, Industrial Production, IMF World/Bank Spring Meetings (Wednesday) – Final EMU Inflation Rate, Flash EMU Consumer Confidence (Thursday) – EMU, Germany Flash Manufacturing, Services PMIs (Friday).
Eminent issues on the back boiler: Asymmetric economic recovery post-pandemic in the euro area. Speculation of ECB tightening/tapering later in the year. Second round of the presidential elections in France (April 24). Impact on the region’s economic growth prospects of the war in Ukraine.
EUR/USD levels to watch
So far, spot is up 0.46% at 1.0836 and faces the next up barrier at 1.0933 (weekly high April 11) seconded by 1.1000 (round level) and finally 1.1087 (55-day SMA). On the other hand, the break below 1.0757 (2022 low April 14) would target 1.0727 (low April 24 2020) en route to 1.0635 (2020 low March 23).
EUR/USD adds to Tuesday’s gains and tests 1.0840.
The dollar trims gains after following recent cycle peaks.
Germany Producer Prices rose more than expected in March.
The single currency keeps enjoying the renewed optimism and now pushes EUR/USD to new multi-day highs in the vicinity of 1.0850 on Wednesday.
EUR/USD looks to yields, USD
EUR/USD advances for the second session in a row and extends the recent breakout of the 1.0800 barrier midweek.
Further gains in spot come on the back of the renewed offered bias in the buck along with the corrective move in US yields. On the latter, the German 10y benchmark yields give away some gains after trading near the psychological 1.00% hurdle on Tuesday, an area last visited back in mid-July 2015.
In the domestic calendar, Germany’s Producer Prices rose at a monthly 4.9% in March and 30.9% over the last twelve months. In addition, the trade deficit in the broader Euroland shrank to €7.6B in February and Industrial Production expanded 2.0% YoY also in the same period.
Later in the session, Mortgage Applications and Existing Home Sales are due across the pond, while FOMC’s Evans and Daly are also due to speak.
What to look for around EUR
EUR/USD regains some composure and trespasses 1.0800, putting further distance from last week’s new 2022 lows in the mid-1.0700s in the wake of the ECB event. Despite the ongoing bounce, the outlook for the pair remains well into the bearish side for the time being, always in response to dollar dynamics and geopolitical concerns. As usual, occasional pockets of strength in the single currency should appear reinforced by speculation the ECB could raise rates before the end of the year, while higher German yields, elevated inflation, the decent pace of the economic recovery and auspicious results from key fundamentals in the region are also supportive of a rebound in the euro.
Key events in the euro area this week: EMU Balance of Trade, Industrial Production, IMF World/Bank Spring Meetings (Wednesday) – Final EMU Inflation Rate, Flash EMU Consumer Confidence (Thursday) – EMU, Germany Flash Manufacturing, Services PMIs (Friday).
Eminent issues on the back boiler: Asymmetric economic recovery post-pandemic in the euro area. Speculation of ECB tightening/tapering later in the year. Second round of the presidential elections in France (April 24). Impact on the region’s economic growth prospects of the war in Ukraine.
EUR/USD levels to watch
So far, spot is up 0.46% at 1.0836 and faces the next up barrier at 1.0933 (weekly high April 11) seconded by 1.1000 (round level) and finally 1.1087 (55-day SMA). On the other hand, the break below 1.0757 (2022 low April 14) would target 1.0727 (low April 24 2020) en route to 1.0635 (2020 low March 23).
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