EUR/USD

Forex News Feed - U.S. Dollar Rises as Consumer Optimism Falls

The greenback picked occurring steam on Friday despite U.S. consumer optimism hitting its lowest level back Donald Trump was elected president and the paperwork shutdown upsetting into its 28th daylight.

The dollar was supported by a stronger-than-respected description for U.S. industrial production in December, in which manufacturing posted an impressive 1.1% profit from November. Such forgive surprises minister to some of the worries approximately the strength of the economy after the slowdown at the halt of last year. They furthermore underline the relative strength of the U.S. compared to the Eurozone, where the Bank of Italy warned Friday that the country may have slid into recession later a second straight decrease in GDP in the fourth quarter of last year.

However, the negatives for dollar sentiment quay's following away: Congress and Trump continue to torment when their impasse well along than the budget and on the summit of 800,000 federal workers remain furloughed. The shutdown could have negative impacts on the economy, put on leaders have warned this week as they presented their quarterly earnings.

The shutdown is comprehensibly having an effect upon U.S. consumers already: the University of Michigan's Consumer Survey Center showed that consumer sentiment plummeted to a two-year low of 90.7 in January from 98.3 a month earlier.

The U.S. dollar index, which trial the greenback's strength nearby a basket of six major currencies, rose 0.17% to 95.875 as of 10:19 AM ET (15:19 GMT).

The dollar after that continued to be supported by a Wall Street Journal relation that U.S. Treasury Secretary Steven Mnuchin is in agreement of mitigation tariffs upon Chinese products. That sent U.S. stocks and the dollar difficult late upon Thursday, despite the Treasury Department denying the news.

Meanwhile, sterling retreated from its recent highs after lackluster retail sales data for December. GBP/USD decreased 0.51% to 1.2914. It's still holding to most of the gains made in recent weeks, as the risk of an economically harmful 'vanguard' Brexit appears to recede.

The yen, typically sought by investors as a safe quay during a period of economic or push-pull attention to, was lower neighboring to the dollar when USD/JPY rising 0.19% to 109.42.

Elsewhere, the euro dipped gone than EUR/USD falling 0.18% to 1.1374.

FOMC Preview: EUR / USD Outlook Hinges on Fed Balance-Sheet Reduction. It remains to be seen if the Federal Open Market Committee (FOMC) will adjust the $ 50 / month in quantitative tightening (QT) amid the little to no signs of a recession.

fundamentally the EUR USD pair can still rise at the beginning of the week of February

The week ahead will see mostly second tier data that covers the German and French final services PMI followed by the Eurozone’s services PMI as well. Data from the U.S. is packed for the week ahead. Key data over the week includes the ISM’s non-manufacturing PMI as well as the advanced fourth quarter GDP report from the U.S. The U.S. economy is expected to slow in the fourth quarter of the year. Durable goods orders report and the delayed retail sales report will also be coming out on Wednesday. Data from Japan and Switzerland is relatively quiet for the week ahead.

I will wait for the new news release movement to be the right moment for the entry and it might give important news

Anxieties about the economic slowdown in the euro zone continued to put pressure on the euro exchange rate and brought eurusd trunks to the level of 1.3191 in the Asian session. eurusd has a chance to go down to the level of 1.1375 in early European session trading as long as it does not break above the level of 1.1405. while if it breaks above 1.1405 eurusd has a chance to rise to 1.14

Estimated EUR / USD: Regulated to Extend Current Dominant Bearish Trends

The US dollar extended its strengthening trend on Thursday and remains supported by relatively upbeat economic data. This was coupled with a new wave of global risk aversion, amid uncertainty over US-China trade negotiations and rising concerns about slowing global growth, boosting demand for traditional safe-haven currencies and lifting the greenback to a two-week high against its European counterparts.

The shared currency was further pressured by additional signs of an economic downturn in the Eurozone after the European Commission lowered its growth forecast for 2019 to 1.3% compared to 1.9% quoted in November. The EUR / USD pair extended last week's retracement of the retracement of the level beyond the key psychological figures of 1.1500 and weakened further below the mid 1.1300an, despite finding some support at lower levels.

The pair now seems to have entered a phase of bearish consolidation and looks oscillating in a narrow trading band throughout the Asian session on Wednesday. Today's Eurozone economic data shows some second-tier data and it seems unlikely to provide meaningful support. Adding to this, growing market expectations that the European Central Bank may have to postpone the increase in interest rates planned for 2020 should further collaborate to limit any bounce efforts, rather than continuing to exert bearish pressure in the near future.

Meanwhile, the technical picture continues to support bearish traders, although oversold conditions on the 1 hour chart help limit further losses, at least for now. Therefore, any increase towards the 1.1360 area might still be seen as an opportunity to initiate some new bearish positions for a direct decline towards the 1.1300 level. Continued sales now seem to open room for an extension of the downward trajectory towards challenging multi-month lows, around the 1.1215 region.

However, a sustained move beyond the mentioned barrier might trigger some movement of short covering back to support for the 50-day SMA changing resistance near the 1.1395-1,400 region. The next increase now seems more likely to be sold and remains restricted near the supply zone 1.1425-30.