A new trading week is underway and the euro continues to show signs of weakness in the short term. This can be seen in the recent performance of EUR/USD, which has fallen nearly 0.5% over the last three trading sessions, reflecting a relatively consistent loss of momentum in the European currency.
United Overseas Bank's (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD continues to lack clear directional cues, trading in a narrower range than previously anticipated.
ING's Chris Turner notes that resilient Eurozone PMIs contrast with France's weak growth and persistent fiscal challenges.
Danske Bank strategists expects EUR/USD to move gradually lower from around 1.12.
EURUSD breaks lower The EURUSD tumbled as the dollar gained ground over its competitors. After a short-lived grind over 1.1200, a bearish breakout could seriously dent the bullish bias.
The EUR/USD pair holds positive ground near 1.1220 during the early European trading hours on Monday. The US Dollar (USD) softens against the Euro (EUR) as US Treasury bond yields drop in extended rally.
Looking at the 4-hour chart, the pair even cleared 1.1220 and tested 1.1270 before the bears appeared. There was a minor pullback below 1.1250, and the pair started trading in a range.
Looking at the 4-hour chart, the pair even cleared 1.1220 and tested 1.1270 before the bears appeared. There was a minor pullback below 1.1250, and the pair started trading in a range.
US dollar bulls remain firmly positioned in the futures market, with aggregate net-long exposure holding near $40 billion despite a modest reduction last week. Yet record short exposure to euro futures has failed to push EUR/USD below its May low, raising the prospect of a short-covering rally that could take the edge off the dollar's strength.
The near term EU/USD outlook could be shaped by this week's central bank meetings as both the Fed and ECB decided whether to hold fire or hike again. The current backdrop is modestly bearish.
The surge in oil and strong AI spending keep inflation high and fuel expectations of rate hike in December.
EUR/USD stayed in sideway consolidations last week and outlook is unchanged. Initial bias remains neutral this week first, and further decline is expected with 1.1276 resistance intact.