EUR/USD today: the euro was supported by increased risks around a trade war
On Friday trades the European trading session opened with a collapse of stock indices. Following this, the EUR/USD pair has strengthened restrained. The reason for the growth of pessimism in the market became the risks of a trade war, after China announced the possibility of restricting the sale of rare-earth minerals, and the United States established trade duties on Mexican goods.
As a result, concerns about a new round of trade confrontation between the US and China and expectations of a global economic slowdown in the US trade war were formed on the market.
Events for today:
- 15:00 – German consumer price index (CPI) (m/m) (May) will be announced.
- 15:30 – the US data will be released: core price index for personal consumption expenditures (y/y) and individual spending (m/m) (apr).
- 16:45 – PMI will be released in Chicago (May) USA.
The main driver of the market remains pessimistic moods that put pressure on stock indices. Negative opening of trading on Wall Street may increase pressure on the American dollar.
The EUR/USD pair received support from the pessimistic moods, on which it updated the level of 1.1150, the upper limit of the downward weekly channel. In conditions of further growth of negative sentiment, it is possible to update the resistance levels: 1.1160 and 1.1180. But it is worth noting the safety of the downward dynamics, which limit the strengthening of the pair. Support levels are located at the levels: 1.1120 and 1.1100.
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Hanzenko Anton
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