Market news
27.05.2024, 00:02

EUR/USD posts modest gains near 1.0850 on stronger PMI, weaker US Dollar

  • EUR/USD trades with mild gains near 1.0850 in Monday’s early Asian session.
  • The stronger US data and the Fed’s hawkish stance might lift the USD and cap the pair’s upside. 
  • ECB’s Cipollone said the time is right for June rate cuts as the recent data moved in the right direction. 

The EUR/USD pair trades in positive territory for the second consecutive day around 1.0850 in Monday’s early Asian session. The stronger-than-expected preliminary Eurozone Purchasing Managers Index (PMI) for May provides some support to the Euro (EUR). However, the chance that the European Central Bank (ECB) will cut interest rates in the upcoming months might cap the upside of the major pair. 

The stronger US economic data and the hawkish comments from US Federal Reserve (Fed) officials might trigger speculation of a delay in the easing cycle this year. Investors have priced in 53% odds of a Fed rate cut in September, down from 64% recorded a week ago, according to the CME FedWatch tool. Investors await the preliminary US Gross Domestic Product (GDP) Annualized for the first quarter (Q1), which is due on Thursday. The GDP number is estimated to grow by 1.5% in Q1 from 1.6% prior. The stronger reading is likely to lift the Greenback in the near term.

On Friday, US Durable Goods Orders increased by 0.7% MoM in April from the downward revised 0.8% in March, stronger than  -0.8% expected. Meanwhile, the University of Michigan Consumer Sentiment Index improved to 69.1 in May from 67.4 in April, better than the estimated 67.5. The UoM five-year inflation expectations eased to 3% from 3.1%.

The ECB policymaker Piero Cipollone said on Sunday that the time is right for an interest rate cut in June as the recent data moved in the right direction. Meanwhile, ECB President Christine Lagarde said that she is "really confident" that Eurozone inflation was under control and an interest-rate cut is probable next month. A lowering of borrowing costs by the ECB in June has been widely expected, and this might weigh on the EUR against its rivals. 

EUR/USD

Overview
Today last price 1.0847
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 1.0847
 
Trends
Daily SMA20 1.0792
Daily SMA50 1.0776
Daily SMA100 1.0814
Daily SMA200 1.0788
 
Levels
Previous Daily High 1.0858
Previous Daily Low 1.0806
Previous Weekly High 1.0884
Previous Weekly Low 1.0805
Previous Monthly High 1.0885
Previous Monthly Low 1.0601
Daily Fibonacci 38.2% 1.0838
Daily Fibonacci 61.8% 1.0826
Daily Pivot Point S1 1.0816
Daily Pivot Point S2 1.0785
Daily Pivot Point S3 1.0763
Daily Pivot Point R1 1.0868
Daily Pivot Point R2 1.0889
Daily Pivot Point R3 1.092

 


 

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location