EUR/USD – Euro gains ground, investors await U.S durable goods orders

EUR/USD has posted small gains in the Wednesday session, after considerable losses on Tuesday. In the European session, the pair is trading at 1.1411, up 0.37% on the day. In economic news, there are no eurozone releases. There are a host of key events in the United States. Durable goods orders are expected to improve to 0.4%, while core durable goods orders are forecast to post a sharp drop of 2.2%. The U.S. will also release unemployment claims and UoM consumer sentiment. On Thursday, the ECB releases the minutes of its policy meeting in October and the eurozone publishes consumer confidence.

The Italian budget continues to be a bone of contention between Rome and Brussels, and the ball is now in the court of the EU, in particular, the European Commission, which is in charge of EU regulations. The Commission is expected to issue a report on Wednesday that Italy’s draft 2019 budget is in breach of EU deficit and debt rules. Italy’s debt stands at a staggering 132% of GDP, and the EU is concerned that the high-spending budget could cause another debt crisis in the eurozone. The EU could impose severe financial sanctions on Italy, with fines of up to 0.2% of the country’s GDP. Senior Italian officials have vowed not to bend on the budget, but may have to reach a compromise with Brussels.

The ECB remains on track to wind up its stimulus package at the end of the year, but the economic slowdown gripping the eurozone could mean a change in monetary policy. German data is often viewed as a bellwether for the eurozone, and a rare decline in German GDP in the third quarter is an alarm bell that the euorozone economy has hit some headwinds. On Tuesday, ABN-Amro, one of the largest banks in the Netherlands, said that it does not expect the ECB to raise interest rates before March 2020.

European open – Europe higher in fragile markets

The global rout pauses for breath

EUR/USD Fundamentals

Wednesday (November 21)

  • 8:30 US Core Durable Goods Orders. Estimate 0.4%
  • 8:30 US Durable Goods Orders. Estimate -2.2%
  • 8:30 US Unemployment Claims. Estimate 215K
  • 10:00 US Revised UoM Consumer Sentiment. Estimate 98.4
  • 10:00 US CB Leading Index. Estimate 0.2%
  • 10:00 US Existing Home Sales. Estimate 5.20M
  • 10:00 US Revised UoM Inflation Expectations
  • 10:30 US Crude Oil Inventories. Estimate 2.5M
  • 12:00 US Natural Gas Storage. Estimate 105B

Thursday (November 22)

  • 7:30 ECB Monetary Policy Meeting Accounts
  • 10:00 Eurozone Consumer Confidence. Estimate -3

*All release times are DST

*Key events are in bold

EUR/USD for Wednesday, November 21, 2018

EUR/USD for November 21 at 6:30 EST

Open: 1.1370 High: 1.1414 Low: 1.1366 Close: 1.1411

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.1120 1.1212 1.1300 1.1434 1.1553 1.1685

EUR/USD was flat in the Asian session. In European trade, the pair has gained ground

  • 1.1300 is providing support
  • 1.1434 is the next resistance line
  • Current range: 1.1300 to 1.1434

Further levels in both directions:

  • Below: 1.1300, 1.1212, 1.1120 and 1.0992
  • Above: 1.1434, 1.1553 and 1.1685

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

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.