|Day's Range||1.107 - 1.115|
|52 Week Range||1.0655 - 1.1496|
The dollar edged lower against the euro on Friday, hurt by month-end flows and as the common currency continued to enjoy a boost from the European Union's recently announced plan to prop up the bloc's coronavirus-hit economies with a 750 billion-euro ($828 billion) recovery fund. The euro was 0.13% higher at $1.1091, its fourth straight day of gains. The euro's rally this week has pushed it over its 200-day moving average for the first time since late March and lifted it about 1.7% for the week, its best weekly gain in nine weeks.
The direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to the main 50% level at 1.1066.
The dollar extended its slide against a surging euro on Friday, hurt by month-end flows and as the common currency continued to enjoy a boost from the European Union's recently announced plan to prop up the bloc's coronavirus-hit economies with a 750 billion-euro ($828 billion) recovery fund. The dollar, a safe-haven currency, found some support as traders awaited U.S. President Donald Trump's response to China's tightening control over Hong Kong, which could worsen tensions between the two powers over the financial hub. Much of the euro's move was driven by optimism generated by the European Commission's stimulus plan announced earlier this week, as well as investors' improved appetite for risk-taking as global economies gradually move to reopen after coronavirus-linked shutdowns, analysts said.
The Euro exploded to the upside during the week, breaking above the 1.11 level. However, we are reaching some significant resistance just above.
Euro has exploded to the upside based upon the idea that Germany is going to underwrite all of the debts of other economies in the EU through these shared bonds.
The European Commission has proposed setting up a 15-billion-euro ($16.6 billion) fund to invest in strategic companies that have been weakened by the COVID-19 crisis. The proposal, which needs to be approved by EU governments and lawmakers, comes after firms worldwide became vulnerable to hostile takeovers as share prices fell and there were fewer funding opportunities during the coronavirus crisis. The new facility could buy stakes in, or offer loans to, strategic companies in sectors such as healthcare, space, defence, digital and green technologies, EU industry commissioner Thierry Breton told a news conference on Friday.
EUR/USD is seen approaching highs not seen since late March as the dollar continues to tumble.
The euro is looking to take flight after a bout of being grounded below $1.10. The currency has rallied more than 1.5 cents towards $1.115 since Wednesday, before trimming some of those gains into the weekend and ahead of US President Donald Trump providing a briefing on China and its intentions with regards to Hong Kong. John Hardy at Saxo Bank says with the euro north of $1.10, this suggests “a new euro rally is afoot”.
U.S. stocks are set to open lower Friday, consolidating ahead of a key statement from President Donald Trump about his administration’s response to China strengthening its grip on Hong Kong. At 07:00 AM ET (1100 GMT), S&P 500 Futures traded 8 points, or 0.3%, lower, Nasdaq Futures down 19 points, or 0.2%. The Dow Futures contract fell 102 points, or 0.4%.
While the economic calendar is on the busier side, Trump’s news conference will be the main event, which is testing risk sentiment early on.
The dollar edged lower against the euro on Friday, hurt by month-end flows and as the common currency continued to enjoy a boost from the European Union's recently announced plan to prop up the bloc's coronavirus-hit economies with a 750 billion-euro ($828 billion) recovery fund. The greenback was little moved after U.S. President Donald Trump said on Friday he was directing his administration to begin the process of eliminating special treatment for Hong Kong, in response to China's plans to impose new security legislation in the territory. The euro's rally this week has pushed it over its 200-day moving average for the first time since late March and lifted it about 1.7% for the week, its best weekly gain in nine weeks.
The Spanish government approved on Friday the creation of a minimum income worth 462 euros ($514) a month for the poorest, Deputy Prime Minister Pablo Iglesias told a news conference, in a scheme that targets some 2.5 million people. Under the decree approved at a cabinet meeting, the government would pay the monthly stipend and top up existing revenue for people earning less so that they get at least that minimum amount every month, Iglesias told reporters. The minimum income would increase with the number of family members to a total of up to 1,015 euros per month.
EUR/USD Current Price: 1.1091 * Total US unemployment claims since mid-March surpassed 40 million. * Hopes on economic recoveries an EU's aid fund kept the mood upbeat. * EUR/USD technical breakout supports a continued advance heading into the weekend.The EUR/USD pair surged to a fresh 2-month high of 1.1093 this Thursday, retaining its bullish stance as the US session comes to an end. Inventors welcome the European Commission proposed aid stimulus program, and took with a pitch of salt dismal data from both shores of the Atlantic, largely anticipated due to the lockdowns that took place in Europe and the US.Worth mention that the US economic contraction in the US was worse than anticipated according to the second reading of Q1 GDP, which was revised to -0.5%. Also, something to highlight, Initial Jobless Claims in the US increased by 2.12 million in the week ending May 22, bringing the total number of claims since mid-March to above 40million. Continuing claims, however, fell by almost 4 million to 21 million, an encouraging sign. Equities rallied, keeping the greenback under pressure.This Friday, Germany will publish April Retail Sales, expected to have fallen by 12% in the month, and by 12.3% when compared to a year earlier. The EU will unveil the preliminary estimate of its May inflation, seen at 0.2% YoY, while the US will publish April Personal Income and Personal Spending data, alongside core PCE inflation, foreseen at 1.1% from 1.7% in March.EUR/USD short-term technical outlook The EUR/USD pair has kept rallying after the bullish breakout despite no apparent catalyst during US trading hours. At the time being, holds on to intraday gains near the 1.1100 level. The 4-hour chart shows that the pair has run well above a bullish 20 SMA, which accelerated north far above the larger ones. Technical indicators have lost their bullish strength within overbought levels, although with the price pressuring the daily high, the risk remains skewed to the upside. The main resistance now is 1.1120, a strong static level above which, large stops are to be expected.Support levels: 1.1040 1.0995 1.0950Resistance levels: 1.1120 1.1150 1.1190View Live Chart for the EUR/USDSee more from Benzinga * AUD/USD Forecast: Decline From A Multi-Week High Seems Corrective * AUD/USD Forecast: Bullish, And Ready To Challenge The March High - 5/26/2020 * EUR/USD Forecast: Testing The Elusive 1.1000 Threshold - 5/26/2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The U.S. dollar fell to a two-month low against the euro on Thursday as the common currency continued to bask in the glow of the recently announced 750 billion-euro ($828.90 billion)coronavirus recovery fund amid improved risk appetite, leading investors to favor riskier assets. The euro's price action continues to be driven by global risk sentiment, even as market participants remain deeply skeptical that the EU recovery fund proposal will navigate the bureaucracy unscathed, said Simon Harvey, FX analyst at Monex Europe. Overnight implied volatility gauges inched up to hit a one-month high above 8%, suggesting investors were prepared for unexpected moves in the common currency.
The U.S. dollar fell against the euro for the third straight day on Thursday as the common currency continued to bask in the glow of the recently announced 750 billion-euro ($828.90 billion)coronavirus recovery fund amid improved risk appetite, leading investors to favor riskier assets. The euro's price action continues to be driven by global risk sentiment, even as market participants remain deeply skeptical that the EU recovery fund proposal will navigate the bureaucracy unscathed, said Simon Harvey, FX analyst at Monex Europe. Overnight implied volatility gauges inched up to hit a one-month high above 8%, suggesting investors were prepared for unexpected moves in the common currency.
The direction of the EUR/USD the rest of the session on Thursday is likely to be determined by trader reaction to 1.0987.
The Euro rallied again during the trading session, breaking above the 200 day EMA at one point and continues to threaten that level with a potential break out.
EUR/USD broke to highs not seen since the start of April, lifted by prospects of further easing in Europe and a weaker dollar.
(Bloomberg) -- Economic sentiment in the euro area rose from a record low after companies started to reopen across the continent following the easing of pandemic restrictions.A small pickup in the European Commission gauge is consistent with similar reports in recent weeks that suggest the 19-nation region is slowly working its way out of the worst crisis in living memory. At the same time, the loss of jobs and business to weeks of lockdowns is likely to leave lasting damage on the fabric of the economy.The recovery in industry confidence in May was driven entirely by higher production expectations, which reversed roughly half their slide of the previous two months. At the same time, manufacturers became more pessimistic about demand, and sentiment in services also worsened, reflecting the particular pressure on hotels, restaurants and tourism.The European Union’s executive arm unveiled an unprecedented stimulus package Wednesday that’s anchored by 750 billion euros ($825 billion) of joint debt issuance and skewed toward euro members most affected by the pandemic including Italy and Spain.Governments have also announced generous individual initiatives to help their economies regain ground. Earlier this week, President Emmanuel Macron unveiled a raft of measures aimed at reviving France’s struggling car industry. Germany is set to present a comprehensive plan in early June.European Central Bank President Christine Lagarde has praised member states for their quick response and tried to alleviate concern on Wednesday that higher public spending will result in a new debt crisis. Policy makers have kept borrowing costs low with a new 750 billion-euro bond-purchase plan, which is likely to be increased at next week’s Governing Council meeting.At that time, new economic projections will be available. The commission has predicted a 7.7% decline in euro-area output for the year, and the ECB is bracing for a slump between 8% and 12%.With efforts to revive the economy growing in size, sentiment rose to 67.5 from a downwardly revised 64.9 in April. That number was updated to account for changes in French data.Sentiment edged up in the Netherlands, Germany, and Spain and was broadly unchanged in France. With April data for Italy unavailable, it’s not possible to judge the latest twists in the trend in the euro area’s third-largest economy.The region’s employment expectations gauge bounced back in May but remained at historically low levels. Job losses are only starting to mount, especially in industries hardest-hit by the pandemic. Unemployment is rising even in Germany despite a generous support program offered by the state.TUI AG, the world’s biggest package-holiday company, will eliminate as many as 8,000 jobs, about 15% of its workforce. Air France-KLM has started talks with unions to reduce staff as part of a restructuring to be unveiled in the coming months.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Euro zone bond yields were relatively stable in early Thursday trade, with Italian yields holding near eight-week lows as optimism derived from the European Commission's recovery fund proposal continued to drive the market. French Finance Minister Bruno Le Maire said on Thursday that he hoped the European Union could reach a deal on the Commission's proposed recovery fund in the coming weeks.
A European Commission plan to issue large amounts of common EU bonds under a coronavirus recovery fund potentially marks the first step towards the euro zone finally getting a region-wide safe-haven asset, investors said. If member governments approve the plan, the EU would borrow 750 billion euros on the markets to finance the fund, a nearly 15-fold increase on its current bond debt pile and making it the region's leading supranational borrower. The recovery fund debt won't on its own be able to rival the region's current fixed-income instrument of reference, Germany's trillion euro bond market, but it might form the basis of an issuance programme that eventually could.
The U.S Dollar is in action later today, with the weekly jobless claims and durable goods orders in focus. There’s also Trump and Beijing to consider.
European stock markets are set to edge higher Thursday as the region continues to reopen for business, but gains will be limited amid rising tensions between the U.S. and China over Hong Kong. At 2 AM ET (0600 GMT), the DAX futures contract in Germany traded 0.5% higher. France's CAC 40 futures were up 1%, while the FTSE 100 futures contract in the U.K. rose 1.2%.