EUR/USD under pressure at 1.10 ahead of German inflation data
EUR/USD has dragged itself back above 1.1000 levels after hitting a low of 1.09924, but the currency is expected to fall below this crucial support level, dependent on German inflation data.
EUR/USD sentiment remains depressed this week, with the currency pair managing to drag itself back above the $1.1000 support level after hitting a low of $1.09924 on Wednesday.
How long the currency pair can stay above that critical support level remains to be seen. However, with upcoming German inflation data expected to show price pressures easing in November, the euro could find some much-needed support.
German CPI this month is expected to fall to -0.06 from 0.1% last month. But if the data misses expectations the euro slide further.
The IG Client Sentiment shows that traders are 57% net-long EUR/USD, giving us a bearish contrarian bias.
USD strengthened by US-China trade deal optimism
The dollar has been buoyed against the euro by the prospect of a deal between the US and China which would bring an end to the ongoing trade dispute by world’s two largest economies.
The greenback also has seen gains against the yen, with the currency moving towards three-week highs at 7.03448.
Dollar sentiment has improved since US President Donald Trump stated that the trade deal with China is in its ‘final throes’ earlier this week.
You can go long or short EUR/USD with IG using derivatives like CFDs.
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