EUR/USD extends the range bound theme in the low-1.1300s

1/24/2022 12:21:00 PM

EUR/USD extends the range bound theme in the low-1.1300s By @pabspiovano #EURUSD #Currencies #Majors #PMI

EUR/USD extends the range bound theme in the low-1.1300s By pabspiovano EURUSD Currencies Majors PMI

EUR/USD trades on the defensive and leaves behind Friday’s decent gains on the back of the renewed buying interest around the US dollar. EUR/USD remai

EUR/USD fails to advance further north of 1.sion.is likely to break below the 1.is hurting MSCI's broadest index of Asia-Pacific shares outside Japan (.

1350 on Monday.Germany Flash Manufacturing PMI surprises to the upside in January.Also weighing on the quote are the geopolitical concerns surrounding Russia and Ukraine, as well as fears of the South African covid variant namely Omicron.Advanced January PMIs also due across the pond later in the NA session.1300, rather than moving higher towards 1.trades on the defensive and leaves behind Friday’s decent gains on the back of the renewed buying interest around the US dollar.Both these key authorities highlighted inflation fears and praised Fed’s push for tighter monetary policies.EUR/USD remains supported by 1.Analysts at ANZ bank explained that they are doubtful that the Fed will end QE next week, as some in the market speculate.

1300 so far EUR/USD maintains the consolidation well and sound at the beginning of the week, always underpinned by the 1.Lagarde added that demand in Europe is not excessive and, as a result, we are unlikely to face the same inflation as the US.” Information on these pages contains forward-looking statements that involve risks and uncertainties.1300 neighbourhood amidst the better note in the greenback and despite another downtick in yields.Indeed, the pair continues to look to dollar dynamics for price direction in the very near term, when the start of the Fed’s tightening cycle and the escalating effervescence in the Russia-Ukraine front keep dictating the sentiment among market participants.Amid these plays, the US 10-year Treasury yields rose 3.In the domestic tap, Germany Flash Manufacturing PMI is expected to have improved to 60.FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.5 for the current month, while the Services PMI is also seen bettering to 52.783%, snapping a three-day decline, as traders anticipate hawkish Fed verdict, amid firmer inflation, during this week’s key meeting.'' Meanwhile, the prospect of higher borrowing costs and more attractive bond yields are weighing on stock markets and in turn, risk apatite which translates to a bearish outlook for currencies such as the euro.

2.In the broader Euroland, the Manufacturing PMI came in at 59.Looking forward, January’s initial activity data will be closely watched for intraday direction.All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.0 and the Services gauge is predicted at 51.2.Should Markit figures for the US PMIs match upbeat expectations, inflation fears will have an additional role to weigh on the EUR/USD prices before the Fed’s verdict.Later in the NA docket, Markit will also publish its manufacturing and services gauges along with the Chicago National Activity Index.If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.4% before Omicron put its foot on the brakes.

What to look for around EUR EUR/USD seems to have met a tough barrier in the area below 1.1500 in mid-January, sparking a corrective downside soon afterwards in tandem with the strong recovery in the greenback.Moving forward, there is not much optimism around the pair, particularly in light of the Fed’s imminent start of the tightening cycle vs.The author makes no representations as to the accuracy, completeness, or suitability of this information.the accommodative-for-longer stance in the ECB , despite the high inflation in the euro area is not giving any things of cooling down for the time being.On another front, the unabated advance of the coronavirus pandemic remains as the exclusive factor to look at when it comes to economic growth prospects and investors’ morale in the region.This week,.

Key events in the euro area this week : Flash PMIs in Germany, France and EMU (Monday) – Germany IFO Business Climate (Tuesday) – Germany GfK Consumer Confidence (Thursday) – Germany Advanced Q4 GDP, EMU Final Consumer Confidence.The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.Eminent issues on the back boiler : Asymmetric economic recovery post-pandemic in the euro area.ECB stance/potential reaction to the persistent elevated inflation in the region.ECB tapering speculation/rate path.Italy elects President of the Republic in late January.

Presidential elections in France in April.EUR/USD levels to watch So far, spot is losing 0.16% at 1.1325 and faces the next up barrier at 1.1372 (10-day SMA) seconded 1.

1482 (2022 high Jan.14) and finally 1.1505 (200-week SMA).On the other hand, a break below 1.1300 (weekly low Jan.

21) would target 1.1272 (2022 low Jan.4) en route to 1.1221 (monthly low Dec.15 2021).

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