The Euro advanced on the US Dollar’s broad-based drop as a result of the blow-out in US Unemployment Claims to almost 3 times median forecasts. EUR/USD finished at 1.1045 in late New York, advancing to a 6-day high from 1.0880 yesterday. Despite the weaker-than-forecast German GFK Consumer Climate Sentiment to 2009 lows, and a rise in Spain’s coronavirus death toll, the Euro benefitted from the weaker Greenback.
Immediate resistance for today lies at 1.1060 followed by 1.1100 which should be strong. The next resistance lies at 1.1160. Immediate support can be found at 1.1000 and 1.0950.
There are no major data releases from the Euro area today. Next week sees Eurozone Business Climate and German CPI. The economic toll of the Covid-19 outbreak in Spain and Italy has yet to be seen.
We also highlighted a few days ago that speculators turned long of Euro bets in the latest Commitment of Traders report. We can expect consolidation today. Look for a likely trading range of 1.0940-1.1060. No strong views at current levels, just trade the range.
