|Day's Range||1.157 - 1.162|
|52 Week Range||1.1302 - 1.2558|
Major currencies like the U.S. dollar and the euro were muted early Tuesday, while the British pound led developed market gainers on the back of supportive wage data.
The head of the Eurogroup of euro zone finance ministers Mario Centeno said on Tuesday Italy's budget plans targeting a higher deficit than demanded by Brussels should not be overestimated in terms of their impact on the euro and countries using the single currency. Italy's budget is just one of those moments and events.
BRUSSELS (Reuters) - Italy's budget for next year is a hot topic but is not on the agenda of a summit of European Union leaders this week, a senior European Union official said on Tuesday. Euro zone leaders ...
The initially gapped lower during the Monday’s session in a bit of risk-off move, but then started to rally higher as American came on board. The 1.16 level is continuing to offer a bit of resistance to the pair and if it breaks higher then it next major stop for the market will be at 1.17 level. The market is still in the consolidation phase and 1.15 level underneath will be the strong support point for the pair. Buying on dips will be the right strategy for this market. …Read MoreGBP/USD
The EUR’s repeated failure to climb 1.16 is a slight cause for concern for the EUR bulls.
The Euro initially gapped lower slightly during the kickoff on Monday but turned around to fill the gap and reach towards 1.16 level by the time the Americans took control.
Risk appetite trickles back into the markets early on supporting the commodity currencies, while the Kiwi gets a boost from Q3 inflation numbers.
Geopolitical noise is the focus of foreign exchange investors on Monday, leaving havens like Japan’s yen and Switzerland’s franc among the best performers, while the U.S. dollar struggles.
Based on the current price at 1.1595, the direction of the EUR/USD is likely to be determined by trader reaction to the uptrending Gann angle at 1.1592. Some may argue that the EUR/USD has been forming a support base the entire month. If this is the case then buyers are likely to go after 1.1669. This is a potential breakout level.
The EUR/USD has formed an ascending trend line that is holding the trend in place. The POC zone 1.1560-70 could show fresh buyers for the pair.
Global stocks trade lower at the beginning of the week on several international issues – rising bond yields, trade war, Italy and geopolitical tensions all weigh on the markets.
The 1.15 level is a strong psychological support underneath and will attract a lot of value traders to send this market higher towards the 1.16 level. The Italian debt crisis is still affecting to Euro to break lower which is expected to take time to settle down and 1.1450 level underneath is acting a floor of this market.
Brexit jitters hit the Pound, with Italy’s budget delivery to the EU later today weighing on the EUR, as risk aversion returns to the markets.
Italian Deputy Prime Minister Luigi Di Maio on Sunday ruled out that the government could take the country out of the euro zone, saying such talk was no more than scaremongering by its political opponents. "No-one need fear an exit from the euro or from the European Union, there is no danger and no intention because that isn't what the Italians asked of us at the election," Di Maio said in an interview on private television station Canale 5. Di Maio, who leads the anti-establishment 5-Star Movement which governs with the right-wing League, told the station that the opposition Democratic Party said the government wanted to leave the euro "because they want to scare people".
It may well be make or break for the Pound and the British PM and the for the EUR as Italy faces up to the Establishment on Monday.
The Euro went back and forth during the trading week, showing signs of resiliency and the 1.15 level. Friday was a bit soft, but overall it looks like we are going to continue to see buyers in this general vicinity.
The Euro rallied initially during the day on Friday, but then sold off a bit during the early hours in the United States. However, I think that there is plenty of support below, so it is probably only a matter time before the buyers return.
The U.S. currency, as measured by the ICE Dollar Index, (DXY) a measure of the buck’s strength against six trading rivals, was at 95.265, up 0.3%. Overnight, the People’s Bank of China set the yuan (USDCNY) midpoint at 6.9120, its weakest level since March 10, 2017.
Based on the current price at 1.1585, the direction of the EUR/USD is likely to be determined by trader reaction to the 50% level at 1.1624 and the 50% at 1.1558. Holding between 1.1624 and 1.1558 will indicate investor indecision and impending volatility.
The Euro rallied during the Thursday’s session on the back of weak US CPI data reaching towards the 1.16 level, which is offering a bit of resistance. The 112 level underneath looks supportive and a slight bounce can send the pair towards the 113 level and above where there is a significant amount of supply in the market.
US Macro data missed expectations and EURO took the opportunity to breach 1.16 handle.
The risk off sentiment continued through the early part of the day, with better than expected trade data out of China doing little to settle the markets.
The Euro rallied after the soft CPI figures in the United States but has started to already give back much of the gains. The 1.16 level seems to be a bit difficult to overcome, so a pullback looks very likely at this point. However, this could continue to be a buying opportunity.
The U.S. dollar traded lower Thursday, putting the currency on track to book its third consecutive losing session. The ICE Dollar Index (DXY) , a measure of the dollar against six of its nearest rivals, is trading down 0.5% to 95.033, around a 10-day low. The greenback, which tends to rise in turbulent times, is lagging behind as the public spat between President Donald Trump and the Federal Reserve continues.