EUR/USD moves to session tops near 1.0840 post-US data
- EUR/USD manages well to keep daily gains beyond the 1.08 mark.
- Auspicious PMIs in Germany, EMU supports the upside on Friday.
- US flash manufacturing PMI came in at 50.8 in February.
The shared currency keeps the buying interest well and sound so far on Friday, taking EUR/USD to the area above the 1.0800 mark following the opening bell in Wall St.
EUR/USD propped up by data
EUR/USD appears within a consolidative range in the last part of the week, always around the 1.08 neighbourhood and a above 2020 lows at 1.0777 recorded on Thursday.
The renewed buying interest in the European currency has been sustained by better-than-expected advanced manufacturing PMIs in Germany and the core Euroland for the current month published during early trade.
In the US calendar, Markit’s flash manufacturing PMI missed estimates at 50.8 for the month of February (vs. January’s 51.9), adding some extra downside pressure to the buck. Next on tap will be January’s Existing Home Sales.
What to look for around EUR
EUR/USD is seen some light at the end of the tunnel this week on the back of upbeat data in the euro docket, managing at the same time to put further sistance from recent YTD lows in the 1.0780/75 band. As usual, USD-dynamics are expected to keep ruling the pair’s price action for the time being along with the broader risk appetite trends, where the COVID-19 remains in centre stage. On another front, the ECB is expected to finish its “strategic review” (announced at its January meeting) by year-end, leaving speculations of any change in the monetary policy before that time pretty flat. Further out, latest results from the German and EMU dockets continue to support the view that any attempt of recovery in the region remains elusive for the time being and is expected to keep weighing on the currency.
EUR/USD levels to watch
At the moment, the pair is gaining 0.51% at 1.0839 and faces the next resistance at 1.0879 (2019 low Oct.1) seconded by 1.0892 (23.6% Fibo of the 2020 drop) and finally 1.0981 (monthly low Nov.29 2019). On the downside, a breach of 1.0777 (weekly/2020 low Feb.20) would target 1.0710 (monthly low Jan.5 2016) en route to 1.0569 (monthly low Apr.10 2017).