News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Gold: 0.00% Silver: -0.44% Oil - US Crude: -3.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ocFjgpmVxG
  • Anyone else seeing a possible inverse H&S pattern shaping up here? This range has been pretty stubborn though and likely needs a big catalyst to ignite a directional breakout. Covid, NFPs, and Fed tapering stand out as top candidates for swaying #SP500 risk appetite. $SPY $SPX https://t.co/v96OpUj4yc
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.42% 🇬🇧GBP: -0.05% 🇨🇦CAD: -0.06% 🇦🇺AUD: -0.22% 🇨🇭CHF: -0.27% 🇯🇵JPY: -0.45% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/08zO57ZXTy
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.02% France 40: 0.01% FTSE 100: -0.02% US 500: -0.39% Wall Street: -0.81% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/M6xK3n7eGq
  • USD rallying today amid an otherwise bad day for 'risk FX' - and that's par for the course for August. Latest seasonality report: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/08/03/monthly-forex-seasonality-august-2021-great-for-gold-bad-for-risk-fx.html
  • GBP/USD is continuing its modest climb higher that began a fortnight ago, and could hit the psychologically important 1.40 level soon. Get your $GBP market update from @MartinSEssex here:https://t.co/p7X6envgGA https://t.co/N24E4oTDxs
  • EUR/USD Nosedives on Record US Services PMI, Clarida Remarks -via @DailyFX Link to Analysis - https://www.dailyfx.com/forex/market_alert/2021/08/04/eur-usd-nosedives-on-record-us-services-pmi-clarida-remarks.html $EURUSD $DXY #Forex
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.46% 🇨🇦CAD: -0.00% 🇬🇧GBP: -0.02% 🇪🇺EUR: -0.17% 🇨🇭CHF: -0.24% 🇯🇵JPY: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/n6oAzR0k7T
  • The Clarida Curveball appears to have come in ~1 hour 20 minutes after the nasty ADP report (and five mins after I started the webinar) After ADP - $USD puts in bee-line to support, when testing bottom of the zone, Clarida's comments this is what's doing the driving https://t.co/svO0TPdYRV
  • Barring a US government shutdown and/or hijinks around the September/October debt ceiling, a December 2021 taper announcement followed by commencement in January 2022 is still likeliest path forward imo
EURUSD Likely Lower on US Beige Book, NFPs

EURUSD Likely Lower on US Beige Book, NFPs

Nick Cawley, Strategist

EURUSD News and Talking Points

- US data is likely to dominate EURUSD for the rest of the week.

- Italian and Spanish politics still firmly in-play.

The DailyFX Q2 Trading Forecasts for all major currencies, commodities and indices, are now availableto download to help you make more informed trading decisions.

EURUSD Sell-off Stalls but Renewed Weakness Likely

EURUSD remains weak but with the Italian political crisis moving, temporarily, to the background, the pair will now be driven by heavyweight US data and tonight’s release of the Federal Reserve’s Beige Book. Today’s second revision of US Q1 GDP may show a slight revision to the upside, while tonight’s Beige Book release may well highlight a tightening US labour market which may force companies to raise wages or increase hiring. On Thursday the latest PCE core reading, the Fed’s preferred inflation measure, is seen nudging lower to 1.8% - below but still close to the central bank’s 2% target - while on Friday the monthly non-farm payroll report is expected to show a gain of 190k jobs.

EURUSD Likely Lower on US Beige Book, NFPs

While data can surprise in either direction, even if this week’s data comes in-line with expectations, the US dollar will continue to move forward with a rate hike at June’s FOMC fully expected. The EUR in contrast will still need to battle against the political upheaval in Italy, while Friday’s vote of no confidence in Spanish PM Rajoy will again turn the spotlight on Europe.

The daily EURUSD chart below shows that the initial target of 1.1554 was made earlier this week and a short period of consolidation may lie ahead for the pair. The upside however should remain capped at 1.17175, the December 12 swing low. The pair may pick up some strength from the RSI indicator which remains in oversold territory but is pointing higher.

The latest IG Client Sentiment Indicator shows retail however are 59.6% net-long EURUSD giving a strong bearish contrarian bias.

EURUSD Price Chart Daily Timeframe (October 2017 – May 30, 2018)

EURUSD Likely Lower on US Beige Book, NFPs

If you are new to foreign exchange, or if you would like to update your knowledge base, download our New to FX Guide and our Traits of Successful Traders to help you on your journey.

What’s your opinion on the EURUSD? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES