5/6/2021 4:39:04 AM GMT | By Dhwani Mehta
EUR/USD remains vulnerable ahead of fresh US data.
Macroeconomic divergence weighs on the euro.
DXY bounce amid worsening mood adds to the bearish bias.
EUR/USD is pressuring the downside around 1.2000, looking to test two-week lows of 1.1986, as the US dollar has caught a fresh bid-wave amid worsening market mood.
A fresh wave of risk-aversion gripped Asia after China’s state planner announced that the government has decided to put an end to the strategic alliance with Australia, as the ties deteriorate. Asian stocks ex-Japan tumbled while the S&P 500 futures erased gains, lifting the safe-haven appeal of the US dollar.
5/6/2021 1:11:02 PM GMT | By FXStreet Insights Team
The EUR/USD pair is firmly higher this Thursday, trading in the 1.2050 region, and could advance further once above 1.2075, FXStreet’s Chief Analyst Valeria Bednarik reports.
Upbeat European and American data fuels the demand for high-yielding EUR
“Germany Factory Orders soared 27.8% MoM in March, while EU Retail Sales surged 2.7% in the same month, both beating the market’s expectations.”
“US figures were upbeat. Challenger Job Cuts decreased to 22.913K in April, while Initial Jobless Claims for the week ended April 30 resulted in 498K, better than the 540K expected. Q1 Nonfarm Productivity increased 5.4%, while Unit Labor Cost in the same period declined by 0.3%.”
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5/4/2021 1:13:28 PM GMT | By FXStreet Insights Team
The EUR/USD pair fell to 1.1998 on the back of renewed dollar’s strength, now bouncing from the level but still trading in the red. All in all, the euro’s bullish potential is limited, according to FXStreet’s Chief Analyst Valeria Bednarik.
EUR/USD maintains the risk skewed to the downside
“The EU macroeconomic calendar had nothing to offer, while the US has just published the March Goods Trade Balance, which posted a deficit of $ 91.6 billion. Later today, the country will release March Factory Orders and the ISM-NY Business Conditions Index for April.”