Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
Cancel Confirm
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Confirm
Octa trading broker Sign up Log in
Trading news
Back
18 Feb 2020

EUR/USD under pressure near 1.0830, ZEW in sight

  • EUR/USD remains offered near 1.0830 ahead of key data.
  • Coronavirus, USD-strength keep weighing on the pair.
  • German/EMU ZEW survey next of relevance in the docket.

The demand for the single currency remains depressed for yet another week, with EUR/USD just managing to navigate above earlier YTD lows in the proximity of 1.0820, levels last visited in April 2017.

EUR/USD now looks to data

The persistent buying interest around the greenback and unabated concerns – albeit somewhat alleviated – surrounding the Chinese COVID-19 continue to hurt the sentiment around the European currency and maintain EUR/USD under permanent downside pressure.

In fact, occasional bullish attempts in EUR/USD remain contained around the 1.0850 region so far, as investors keep the preference for the greenback in the current context of exchanging risk appetite trends and in response to recent positive results from some US fundamentals (vs. poor readins from the European docket).

Moving forward, the euro will closely follow the results from the upcoming ZEW survey, which is expected to shed further detail on how the Economic Sentiment fared in both Germany and the broader Euroland during February.

Across the ocean, the NY Empire State index is expected along with the NAHB index and TIC Flows.

What to look for around EUR

There is no respite for EUR/USD in the first half of the week, which is now trading closer to the key support at 1.08 the figure amidst the generalized bearish view on the shared currency. In the meantime, USD-dynamics are expected to dictate the pair’s price action for the time being along with the broad risk trends, where the COVID-19 is still in the centre of the debate. On another front, the ECB is expected to finish its “strategic review” (announced at its January meeting) by year-end, leaving speculations of any change in the monetary policy before that time pretty flat. Further out, latest results from the German and EMU dockets continue to support the view that any attempt of recovery in the region remains elusive for the time being and is expected to keep weighing on the currency.

EUR/USD levels to watch

At the moment, the pair is advancing 0.09% at 1.0838 and faces the initial hurdle at 1.0957 (weekly high Feb.10) seconded by 1.0988 (21-day SMA) and finally 1.1069 (55-day SMA). On the downside, a breach of 1.0827 (weekly/2020 low Feb.14) would target 1.0814 (78.6% Fibo of the 2017-2018 rally) en route to 1.0569 (monthly low Apr.10 2017).

Feb 18, 2020

Sources: Recession risk forces BOJ to row back on inflation goal - Reuters

Citing sources familiar with the Bank of Japan (BOJ) thinking, Reuters reports the Japanese central bank may be compelled to dial back its commitment
Read more Previous
Feb 18, 2020

When are the UK jobs and how could they affect GBP/USD?

The UK labor market report is expected to show that the average weekly earnings, including bonuses, in the three months to December, are expected to r
Read more Next