BUZZ-COMMENT-Late-season hibernation may be in vogue for EUR/USD bears
Jan 24 (Reuters) - EUR/USD rallied to a 1-month high Friday and key resistance in the 1.0600/30 zone may give way as bears retreat due to potential for easing trade tensions, data disparities and technicals.
In an interview with Fox News President Trump said he would rather not use tariffs against China but called tariffs a "tremendous power".
The potential easing of trade tensions rallied China's yuan and EUR/USD as well since Europe's economy is dependent on economic growth from China.
U.S. January S&P Global PMI reports indicated business activity hit a 9-month low while the final reading of January University of Michigan was revised to 71.1 from the flash 73.2 while the 5-year inflation outlook was revised down to 3.2% from 3.3%.
Euro zone January PMI came in at 50.2 versus 49.7 estimates, which indicated a return to growth.
The dollar's yield advantage over the euro decreased as German-U.S. spreads US2DE2=RR hit their tightest since early November which helped EUR/USD rally.
Technicals increasingly highlight upside risks.
EUR/USD rallied above the 5- and 55-day moving averages as well as the daily cloud base. A massive monthly bull hammer is in place for January and rising daily, monthly RSIs imply upward momentum remains.
The 1.0600/30 zone will be a key impediment for bulls. Should it break, a test near 1.0925 may ensue.
For more click on FXBUZ
Related Articles
[U.S. IPO] Oilfield Water Giant WaterBridge Raises $634M in IPO; Can It Repeat LandBridge's 125% Surge?
TradingKey - Oil field water management company WaterBridge (WBI) announced on September 16 that its US initial public offering (IPO) is expected to price 31.7 million shares at $20 per share, raising a total of $634 million.
Effects of Interest Rate Cuts: Impact of Fed's September Meeting on Crypto Market
The Fed’s rate cut decision is a major bullish catalyst for crypto — but it comes with uncertainty. Investors should understand the economic rationale behind the move and adjust strategies accordingly. Staying flexible, informed, and disciplined is key to thriving in crypto’s fast-moving environment
September Global Central Bank Divergence: How Will U.S. Stocks and Forex Markets Move?
TradingKey - Despite the divergence in monetary policies among major global central banks in September (with the Federal Reserve cutting rates while the European Central Bank, Bank of England, and Bank of Japan maintain steady rates), we expect the policy directions of the Fed, ECB, and BoE to...
What Is Worldcoin? Why Did WLD Surge Suddenly, and What’s Next?
Worldcoin is evolving from a “hype token” into a foundational layer for global identity. Its fusion of biometrics, blockchain, and financial inclusion has earned growing recognition from users and institutions. If it can overcome technical hurdles, launch real-world payment use cases, and stabilize
Fed to Cut Rates: All Asset Prices Up!
TradingKey - The Federal Reserve is almost certain to restart its interest rate cut cycle on 17 September this year. After in-depth research, we have concluded that cryptocurrencies, the broader U.S. stock market, and short-term U.S. Treasury bonds will all go up.
