The EURUSD pair yesterday closed on a positive note as EURO bulls saw positive support from multiple fronts. Healthy risk appetite in the global market, better than expected Euro area macro data and disappointing US macro data, Brexit developments in the UK are factors that contributed to EURO’s gains yesterday. Sino-U.S. trade talk optimism over headlines which stated that Chinese Vice Premier Liu He is traveling to the US to resume high-level trade talks which occurred last week between delegates of both nations also helped influence strong positive price action across yesterday’s trading session.
ECB Meeting Minutes Likely To Cap EURO’s Upside Move
Following yesterday’s jump to weekly tops, German 10-year government bond yields continue to see positive price action providing fundamental support to EURO bulls. While EU has refused to renegotiate with the UK on Brexit, PM May & opposition party leader Jeremy Corbyn have finally collaborated to make progress on Brexit front as deadline April 12 approaches fast. Given the fact that both sides will face a high level of economic loss in case of hard Brexit, traders are of expectations that Brexit will see further extension and this is also providing some level of fundamental support to EURO in the broad market.
As of writing this article, the EURUSD pair is trading at 1.1242 up by 0.07% on the day. Investors now await EU and US macro data updates for short term profit opportunities ahead of tomorrow’s US NFP data which could greatly alter the directional movement of the pair. Weak USD is also helping the pair retain positive price action but profit booking activity erased some level of gains made in previous session post which the pair has taken to rangebound price action in late Asian market hours. On the release front, EU calendar will see the second tier German factory orders data and release of last month ECB MPC Meeting minutes which could hinder further gains today owing to expectations of highly dovish content in the update. US calendar will see the release of Initial Jobless claims and speech by FOMC members Mester & Williams. Expected support and resistance for the pair are at 1.1220, 1.1200, 1.1185 and 1.1250, 1.1285, 1.1305 handles respectively.
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