EUR/USD firm above 1.1200

FXStreet (Edinburgh) - The shared currency keeps the buoyant tone vs. the US dollar at the end of the week, with EUR/USD hovering over the mid-1.1200s so far.

EUR/USD attention to US releases

The pair extends the upside after closing the first month with gains since July 2014, against a backdrop of low volume and flat volatility in response to the Labour Day holiday in Euroland.

There are no scheduled releases in the euro area today, leaving all the action to the US publications due later, with the Reuters/Michigan index and the ISM Manufacturing as the main highlights. Market consensus expects both prints to improve for the current month to 96.0 and 52.0, respectively.

EUR/USD key levels

At the moment the pair is advancing 0.35% at 1.1264 with the next hurdle at 1.1296 (100-d MA) followed by 1.1380 (high Feb.26) and then 1.1389 (high Feb.25). On the downside, a drop below 1.1203 (low May.1) would expose 1.1125 (daily cloud top) and finally 1.1072 (low Apr.30).

EUR/JPY loses 135 handle

EUR/JPY shed partial gains in the mid-European session, largely as the shared currency took a pause in its corrective mode versus the US dollar and eased-off highs near 1.13 barrier while USD/JPY remains elevated just shy of 120 mark after softer Japanese CPI print kept the yen in red.
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USD/JPY testing weekly highs near 119.90

The US dollar continues its upside bias in the European morning, lifting USD/JPY to fresh session highs, largely on the back of rising US treasury yields as traders gear up for the upcoming manufacturing PMIs – Final and ISM, and revised consumer sentiment which may provide fresh incentives on USD moves.
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