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EUR/USD – lack of data leaves euro treading water

EUR/USD has edged lower in the Tuesday session, after posting modest gains on Monday. Currently, the pair is trading at 1.1675, down 0.24% on the day. It’s a quiet day on the release front, with no eurozone events. In the U.S, the key event is CB Consumer Confidence, which is expected to drop to 127.6 points. On Wednesday, the U.S releases durable goods reports.

The euro continues to have a quiet week, but trade tensions continue to simmer between the U.S and its trading partners. Although the headlines have been dominated by the trade between the U.S and China, the European Union has also been drawn into the frey. On Friday, the EU slapped 25% tariffs on $3.3 billion of U.S goods. This move was in response to U.S tariffs on EU steel and aluminum imports. However, President Trump has more cards up his sleeves and has threatened to impose 20% tariffs on EU vehicles. Such a move could take a toll on German auto giants Daimler and BMW and could sour investors on the euro. The EU has enough on its plate without a trade war with the U.S, and has launched a complaint over the U.S tariffs with the World Trade Organization. Still, the EU has not shied away from retaliatory moves, with EU Commission President Jean-Claude Juncker saying that the EU’s response would be “clear but measured”. The U.S Treasury Department is expected to announce restrictions on Chinese investment in the U.S, as part of the government’s efforts to curtail alleged intellectual property theft by the Chinese. This would mark a significant escalation of the trade battle with China, and a strong Chinese response could shake up the currency markets.

There is widespread concern that recent protectionist moves could hamper global growth and financial stability. This was the message on Sunday from the Bank of International Settlements (BIS), which acts as an umbrella group for some 60 central banks. The BIS also warned that the escalating trade war could have negative side effects on the currency markets. At the same time, the BIS expressed support for the Federal Reserve raising interest rates gradually and for the ECB heading towards normalization as it winds up its massive asset program.

  US Treasury Secretary Warns of Forthcoming Announcement on Investment Restrictions [1]

  Not out of the weeds yet [2]

EUR/USD Fundamentals

Tuesday (June 26)

Wednesday (June 27)

*All release times are DST

*Key events are in bold

EUR/USD for Tuesday, June 26, 2018

EUR/USD for June 26 at 4:30 DST

Open: 1.1704 High: 1.1721 Low: 1.1677 Close: 1.1675

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.1434 1.1553 1.1637 1.1728 1.1829 1.1910

EUR/USD inched higher in the Asian session. The pair has reversed directions in European trade and headed lower

Further levels in both directions:

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [6]

Market Analyst at OANDA [7]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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