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.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The trio of central banks overseeing the commodity currencies have already cut their main rates to all-time lows. Get your market update from @CVecchioFX here: https://t.co/OSUXrN5P3j https://t.co/3nwDel6e28
  • The tension from March continues to subside, allowing for the $USD to slide to fresh two-month-lows. Get your currencies market update from @JStanleyFX here: https://t.co/bRSRjUqg6Z https://t.co/Q35YpIZEd2
  • López Obrador hopes #USMCA will help tighten trade relationships between the US and Mexico. Get your currencies market update from @HathornSabin here: https://t.co/bZrUKSCGaS https://t.co/MZ7UoiWWRj
  • The $AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here: https://t.co/LkEFJViPWY https://t.co/sofO135ElG
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data. Get your ASEAN currencies market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/ZGFaQQ3Hr2
  • The #Euro is the big driver here for DXY as it is 57% of the index. It is rising now and trying to break above the March 27 high at 11147. Get your $EURUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/73SaL5AeXD
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
EURUSD Price Well Placed to Rally Ahead of November Lows

EURUSD Price Well Placed to Rally Ahead of November Lows

2018-11-27 11:00:00
Martin Essex, MSTA, Analyst
Share:

EURUSD price, news and analysis:

  • A reduction in Italian budget concerns is potentially positive for EUR.
  • By contrast, the US-China trade war seems to be worsening ahead of the upcoming G20 summit, potentially weakening USD.

EURUSD price recovery possible

A rally in the EURUSD price after several sessions of losses now seems possible as concerns about the Italian budget ease and US President Donald Trump ramps up the US-China trade war ahead of the G20 summit in Argentina that begins this coming Friday. Here’s what traders need to watch:

  • The Italian budget: the Italian media reported Monday that the country’s budget deficit target could be reduced from a planned 2.4% to 2.2% of GDP and it could even be cut to 2.0%, potentially avoiding a budget clash with the EU and positive for the EURUSD price.
  • That has cut the spread, or difference in yield, between 10-year Italian government bonds and 10-year German Bunds to below three percentage points.

Italy/Germany 10-year yield spread chart, daily timeframe (January 1 – November 27, 2018)

Latest Italy-Germany yield spread chart.

Source: Thomson Reuters Eikon

  • Italian consumer confidence fell to 114.8 in November, below the predicted 115.9 and also under October’s downwardly revised 116.5. French consumer confidence was weaker than expected too.
  • However, European Central Bank President Mario Draghi said Monday that the ECB still plans to halt its quantitative easing program, arguing that inflation is set to increase despite slower Eurozone economic growth.
  • The ECB’s policy thinking could be further detailed today when board member Yves Mersch gives a keynote speech in Frankfurt. If he reinforces Draghi’s comments that could lift EURUSD.

EURUSD Price Chart, Daily Timeframe (July 29 – November 27, 2018)

Latest EURUSD price chart.

Chart by IG

  • On the flipside, US President Donald Trump told The Wall Street Journal that he expects to proceed with higher tariffs on Chinese goods.
  • That has dampened USD sentiment ahead of a planned meeting between Trump and Chinese President Xi Jinping at the two-day G20 summit that begins Friday in Buenos Aires.
  • Another speaker this session will be Federal Reserve Vice-Chair Richard Clarida, who will talk as speculation grows that the Fed will raise interest rates more slowly this year than once seemed likely.
  • Meanwhile, from a technical perspective, EURUSD remains in a downtrend but there is support at 1.13 from the August 15 and October 31 lows, and then at the November 12/13 lows at 1.1216 and 1.1222 respectively.

More to read:

Is the Eurozone entering a second debt crisis | Infographic

Using news and events to trade forex

US-China trade war picks up again | Infographic

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

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

DISCLOSURES

News & Analysis at your fingertips.