EUR/USD today: the euro in growing on the risks of a trade war
From the start of the day, the EUR/USD pair has significantly strengthened, as a result of which it has overcome the psychological mark of 1.1000. The reason for such a rapid growth of the euro against the US dollar was the trade risk, which escalated after the lack of clear results. Also in the coming days, the US – China trade talks will be held at the highest level.
Events for today:
- 15:30 – data on the USA will be released: core consumer price index (CPI) (m/m) (September), core consumer price index (CPI) (y/y) (September), consumer price index (CPI) (m/m) (September) and the initial jobless claims.
An inflation report in the United State will be a significant data today, which in importance is not compromised by the results of trade negotiations. But the main attention of the market is focused on the US – China trade talks.
The EUR/USD pair appreciably strengthened on the growth of the euro due to trade uncertainty. As a result, the ascending channel of the past week was resumed. And breaking through the psychological mark 1.1000 canceled all expectations for the formation of a downward reversal. Further growth of this pair limits its overbought and resistance levels: 1.1040-50 and 1.1080. In the context of growing optimism, a correction to support levels is not excluded: 1.1000 and 1.0970.
Read also: “G20 Summit – what to expect and to beware of”
Hanzenko Anton
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