The EUR/USD remains under pressure near 1.1570, as the FOMC meeting approaches.
- EUR/USD keeps the offered stance unchanged around 1.1570.
- US ADP report surprised to the upside in October at 571K jobs.
- The FOMC event is due later with QE tapering in the centre of the debate.
Sellers appear to have retained control of the emotions surrounding the European currency, causing EUR/USD to fall to daily lows of 1.1560 on Wednesday.
EUR/USD falls as a result of US data, with the focus shifting to the Fed.
The EUR/USD is now extending its losses and adding to Tuesday’s bearish market action against the backdrop of the greenback’s continued recovery as well as the prevalent caution ahead of the FOMC meeting.
Indeed, purchasing activity in the dollar increased further as a result of the US calendar’s better-than-expected outcomes. Actually, the US ADP report showed that the US economy generated 571K jobs in October, while the ISM Non-Manufacturing jumped to 66.7 last month and headline Factory Orders increased by 0.2 % on a monthly basis in September.
Further gains in the dollar are also expected as US rates in the front end and belly of the curve rise to 0.50 % and 1.57 % , respectively.
EUR/USD levels to monitor
So far, spot is down 0.12% at 1.1565, with the next resistance level at 1.1689 (55-day SMA), followed by 1.1692 (monthly high Oct.28), and ultimately 1.1755. (weekly high Sep.22). A break below 1.1535 (weekly low Oct.29) would target 1.1524 (2021 low Oct.12) on the way to 1.1495. (monthly low Mar.9 2020).
Markets News :
- NZD leads, CAD lags on the day
- European equities mixed; S&P 500 futures down 0.1%
- US 10-year yields down 1.6 bps to 1.531%
- Gold down 0.1% to $1,784.70
- WTI down 2.2% to $82.10
- Bitcoin down 0.1% to $63,064