EUR/USD pair leaped to its highest level since November 9 at 1.1088

 

The EUR/USD pair leaped to its highest level since November 9 at 1.1088, recording a daily gain of more than 100 pips on Tuesday. The pair has been spending the last couple of hours in a tight range a little below its peak and is now trading at 1.1074, up 0.91% on the day.

Today’s macro data from the euro area allowed the pair to build on yesterday’s gains in the first half of the day, as the GDP growth in the eurozone matched the expectations with 1.7% in the first quarter on a yearly basis. Furthermore, the trade surplus in the area increased to €30.9 billion, beating the consensus of €26.5 billion. The pair’s bullish momentum received some additional boost later in the day as the weak macro data from the U.S. triggered another USD sell-off, pushing the US Dollar Index to its lowest level since Trump’s election victory at 98.06.

  • US April Housing Starts show a retreat – Wells Fargo

Although the index seems to have found support there, it struggles to make a meaningful correction as the U.S. Treasury bond yields are performing poorly on Tuesday, with the 10-year reference losing 0.4% at 2.329%. However, the index may be able to limit its losses and stay afloat above the 98 handle amid a lack of fundamental catalysts in the remainder of the session. Tomorrow’s economic calendar will feature the Consumer Price Index for the eurozone, which is expected remain unchanged at 1.9% on a yearly basis in April.

  • Higher EUR and the spill-over into the G10 FX space – ING

Technical outlook

The pair could encounter the first technical resistance at 1.1100 (psychological level) before 1.1140 (Nov. 4 high) and 1.1200 (psychological level/Oct. 9 high). To the downside, supports could be seen at 1.10 (psychological level), 1.0960 (May 7 low) and 1.0915 (May 8 low).

 

 

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