The Euro picks up extra pace against the US Dollar
The Euro manages to gather extra steam against the US Dollar, encouraging EUR/USD to advance to new monthly highs in the 1.0980-1.0985 band on Tuesday, re-shifting its attention to the key threshold of 1.1000 the figure. On the flip side, the Greenback breaks below the key support at 103.00 for the first time since late August when tracked by the USD Index (DXY), always against the backdrop of the mixed performance in US yields across different maturities.
There are no changes to the monetary policy front, as investors continue to factor in the likelihood of interest rate cuts by both the Federal Reserve (Fed) and the European Central Bank (ECB) at some point in the spring of 2024. On the domestic calendar, Consumer Confidence in Germany, measured by GfK, improved marginally to -27.8 in December, while Consumer Confidence in France edged higher to 87 in November. In the US docket, the Conference Board’s Consumer Confidence came in above estimates at 102.0 for the current month (from 102.6), and the FHFA’s House Price Index rose at a monthly 0.6% in September.
Additionally, Chicago Fed Austan Goolsbee (voter, centrist), FOMC Christopher Waller (permanent voter, hawk), FOMC Michelle Bowman (permanent voter, centrist), and FOMC Michael Barr (permanent voter, centrist) are all due to speak. EUR/USD’s upside momentum picks up extra pace and re-focuses on the key 1.1000 barrier. The November high of 1.0965 (November 21) is now the immediate goal for bulls ahead of the critical 1.1000 level. Further north, EUR/USD might face resistance around the August top of 1.1064 (August 10) and another weekly peak of 1.1149 (July 27), both of which precede the 2023 high of 1.1275 (July 18). In the meanwhile, any corrective dips should find support initially at the key 200-day SMA at 1.0812, followed by the temporary 55-day SMA at 1.0665. South from here comes the weekly low of 1.0495 (October 13) prior to the 2023 low of 1.0448 (October 3). Overall, the pair's chances should remain strong as long as it stays above the 200-day SMA.
Additionally, Chicago Fed Austan Goolsbee (voter, centrist), FOMC Christopher Waller (permanent voter, hawk), FOMC Michelle Bowman (permanent voter, centrist), and FOMC Michael Barr (permanent voter, centrist) are all due to speak. EUR/USD’s upside momentum picks up extra pace and re-focuses on the key 1.1000 barrier. The November high of 1.0965 (November 21) is now the immediate goal for bulls ahead of the critical 1.1000 level. Further north, EUR/USD might face resistance around the August top of 1.1064 (August 10) and another weekly peak of 1.1149 (July 27), both of which precede the 2023 high of 1.1275 (July 18). In the meanwhile, any corrective dips should find support initially at the key 200-day SMA at 1.0812, followed by the temporary 55-day SMA at 1.0665. South from here comes the weekly low of 1.0495 (October 13) prior to the 2023 low of 1.0448 (October 3). Overall, the pair's chances should remain strong as long as it stays above the 200-day SMA.