- EUR/USD keeps the bid tone in the 1.1270/80 band.
- The 21-day SMA at 1.1285 challenges bulls’ aspirations
- Trade, ECB easing, Fed’s rate cut seen ruling the sentiment.
EUR/USD is extending the up move for yet another session on Monday, although the 1.1280/85 band has emerged as a tough nut to crack for the time being. This area is a coincident with the key 21-day SMA (1.1285).
Spot has gained ground almost exclusively on the back of USD-dynamics, namely rising speculations of a rate cut by the Federal Reserve as early as at this month’s meeting. The size of such a rate cut, however, still remains unclear for market participants.
However, EUR faces issues in its own backyard and not only stemming from the unremitting slowdown in the region, but also from the increasing probability that the ECB could cut rates in the near term along with a potential restart of the ‘quantitative easing’ (QE) and a probably change in the bank’s forward guidance.
In the meantime, developments from the US-China trade front and their impact on the broad risk appetite trends are expected to drive the sentiment in the near/medium term. In this regard, the US earnings season kicking in this week is seen collaborating with the mood as well. Data wise today, the greenback will be looking at the publication of the NY Empire State index.
Technically speaking, the 1.1181/76 band appears underpinning EUR/USD and is expected to hold the downside in the near term. On the way up, spot ideally needs to surpass the critical 200-day SMA at 1.1323 in order to alleviate downside pressure and allow for a new visit of monthly lows in the 1.1415/20 band.
Image sourced from Pixabay
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.