EUR/USD erases losses, rises back above 1.1800
- Euro recovers ground versus USD and GBP.
- EUR/USD prints fresh daily highs above 1.1815.
The EUR/USD rebounded from two-week lows at 1.1769 and climbed to 1.1816, reaching a fresh daily high. It remains near the top, with a positive intraday momentum on the back of a decline of the greenback.
The US dollar reversed on US hours and turned negative. The DXY was up by 0.20%, near 92.90 and then dropped toward 92.50. The 10-year yield is modestly lower at 1.32%. In Wall Street, stocks are mixed. The Dow Jones gains 0.75%, and the Nasdaq drops by 0.33%.
The key economic report is due on Tuesday in the US inflation number. The August CPI is due and could affect monetary expectations. Next week will be the September FOMC meeting. Fed’s official enter a blackout period. “The disappointing labor market report for August and the uncertainties imparted by the recent surge in COVID cases on the economic outlook mean that an announcement of tapering at the upcoming meeting is quite unlikely,” said analysts at Well Fargo.
The rebound in EUR/USD was also boosted by the euro that erased losses versus the pound and rose further against the Swiss franc.
EUR/USD back above 1.1800
The EUR/USD still shows some bearish pressure, although the recovery above 1.1800 alleviated the pressure. A break under 1.1750 should clear the way to more losses. On the upside, resistance levels might be seen around the 1.1815 area, followed by 1.1835 and 1.1850.
Technical levels