Market news
18.08.2022, 09:47

EUR/USD resumes the downside, falters ahead of 1.0200 again

  • EUR/USD’s upside momentum falters near the 1.0200 mark.
  • Final Inflation Rate in the euro area came at 8.9% in July.
  • US Initial Claims, Philly Fed Index take centre stage across the pond.

The selling pressure returns to the European currency and forces EUR/USD to give away part of the recent gains and return to the mid-1.0100s.

EUR/USD weaker on USD-buying

EUR/USD fades two consecutive daily advances and comes under pressure amidst shy losses on Thursday, all against the backdrop of some unostentatious rebound in the greenback.

Indeed, not much happening in the FX universe, as market participants refocus on upcoming US data and continue to digest Wednesday’s release of the FOMC Minutes.

The move lower in the pair also comes in tandem with further recovery in the German 10y Bund yields, which so far clinch the third consecutive daily gain near the 1.15% region.

In the euro docket, final inflation figures in the euro area showed the headline CPI rose 8.9% in the year to July and 0.1% vs. the previous month.

In the US calendar, usual weekly Claims and the Philly Fed Manufacturing Index will take centre stage seconded by the CB Leading Index, Existing Home Sales and speeches by FOMC’s George and Kashkari.

What to look for around EUR

EUR/USD now appears somewhat stabilized in the 1.0150 region against the backdrop of a firm recovery in the demand for the US dollar.

Price action around the European currency, in the meantime, is expected to closely follow dollar dynamics, geopolitical concerns, fragmentation worries and the Fed-ECB divergence

On the negatives for the single currency emerge the so far increasing speculation of a potential recession in the region, which looks propped up by dwindling sentiment gauges and the incipient slowdown in some fundamentals.

Key events in the euro area this week: EMU Final Inflation Rate (Thursday).

Eminent issues on the back boiler: Continuation of the ECB hiking cycle. Italian elections in late September. Fragmentation risks amidst the ECB’s normalization of its monetary conditions. Impact of the war in Ukraine on the region’s growth prospects and inflation.

EUR/USD levels to watch

So far, spot is losing 0.14% at 1.0164 and a break below 1.0096 (weekly low July 27) would target 1.0000 (psychological level) en route to 0.9952 (2022 low July 14). On the other hand, the next up barrier comes at 1.0368 (monthly high August 10) seconded by 1.0486 (100-day SMA) and finally 1.0615 (weekly high June 27).

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location