Euro loses momentum as sterling fails to rally

Markets are relatively muted as investors prefer to remain on the sidelines ahead of key data later this week.

Euro and dollar notes
Source: Bloomberg

Euro buoyant ahead of key inflation data

EUR/USD is trading at $1.1299, down 0.21% after failing to breach its 50-hour moving average at $1.1336 – an area likely to the continue to act as topside resistance over the near term which, when coupled with a contractionary reading of 37, is likely to see a continued move lower bringing $1.1186 into play.

Key downside support is placed at the $1.1291 level, which if held – as it has previously done on multiple occasions – could lead to a retest of the pair’s 50-hour MA.

Euro pairs are likely to remain relatively buoyant ahead of German inflation data – scheduled for release on Thursday – which is expected to come in at -1.0%, unchanged month on month. 

Sterling fails to rally on positive data

GBP/USD is trading at $1.5215, adding 0.01%, and remaining relatively unchanged following the release of the UK’s manufacturing production data which came in at 0.1%, beating market expectations of a fall to -0.1% from 0.8% month on month.

The pair most recently failed to break above key resistance at the $1.5253 level, which is likely to continue to be the case over the near term.

The next clear downtrend – supported by a contractionary reading of 40 in its relative strength index – is likely to be seen at the pair's 200-hour MA at $1.5162.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.