Products You May Like
- EUR/USD runs out of steam just past 1.1600.
- EMU flash September CPI came at 3.4%, Core CPI at 1.9%.
- US ISM Manufacturing improves to 61.1 in September.
The single currency gives away some gains and motivates EUR/USD to return to the sub-1.1600 area at the end of the week.
EUR/USD recedes from tops on upbeat ISM
The daily recovery in EUR/USD falters ahead of 1.1610 on Friday after the greenback looks to claw back some ground following the better-than-expected ISM Manufacturing and U-Mich results.
In addition, yields of the US 10-year reference note came back to life ad now flirt once again with the 1.50% level in the wake of the ISM and U-Mich releases. In Germany, the 10-year Bund yields plummet to the -0.23% region.
In the docket then, the ISM Manufacturing surprised to the upside and improved to 61.1 during last month. In the same direction, the final Consumer Sentiment print rose to 72.8 (from 70.3) during the same period. Finally, Markit’s Manufacturing PMI bettered estimates at 60.7 although move a tad lower from August’s 61.1.
EUR/USD levels to watch
So far, spot is gaining 0.21% at 1.1598 and faces the next up barrier at 1.1674 (10-day SMA) followed by 1.1755 (weekly high Sep.22) and finally 1.1770 (55-day SMA). On the other hand, a break below 1.1562 (2021 low Sep.30) would target 1.1500 (round level) en route to 1.1495 (high Mar.9 2020).