EUR/USD today: the euro remains under the pressure on increasing risks
With the opening of trading on Thursday, the EUR/USD pair continues to be very restrained, limited to weekly lateral dynamics. Market restraint is due to the persistence of uncertainty regarding the US-China trade relations. The negative start of stock indexes in Europe has increased the demand for safe assets, which is also the US dollar. But the overall restraint of the market limits the dollar’s ability to grow.
Events for today:
- At 15:30 – the US data will be released: core producer price index (PPI) (m/m) (April), export volume, import volume, initial jobless claims, producer price index (PPI) (m/m) (April) and the trade balance (Mar).
- Also at 15:30 – speech of the Fed Chairman, Mr. Powell will take place.
The day today is very full of data on the United States, and the speech of the US Federal Reserve Chairman may increase significantly the volatility against the dollar. The main driver of the market continues to be the risks of exacerbation of the US – China trade relations.
The EUR/USD pair on the prospects of exacerbation of the US – China trade confrontation has updated a low near the key support 1.1170. But in conditions of restrained activity, the side channel from 1.1170 to 1.1220 remains a restraining trading range for this pair. We should expect a resumption of the EUR/USD decline in the conditions of preserving the risks of aggravated trade relations. Due to the high nervousness of the market, bursts of volatility are possible on comments and statements. Significant resistance is located at levels: 1.1200 and 1.1220, from which a reversal is expected. Support levels continue to be the mark: 1.1160 and 1.1130.
Read also: “Stock Indices of the Asia-Pacific Region”
Hanzenko Anton
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