Euro Hits 2-Week High On Confidence Data
Kenny Fisher | Apr 06, 2021 02:46PM ET
The euro has registered gains for a second consecutive day. Currently, EUR/USD is trading at 1.1851, up 0.35% on the day. Earlier in the day, the pair touched a high of 1.853, its highest level in two weeks.
Euro Rises On Strong Sentix Investor Confidence
The Eurozone continues to struggle with COVID, with France entering a new lockdown which includes the closure of schools. The EU vaccine rollout program has been unimpressive, with not nearly enough shots for the bloc’s 445 million residents. With COVID still not under control, economic activity has been generally soft. Given these difficult conditions, it was all the more surprising that Eurozone Sentix Investor Confidence climbed to 13.1 for April, up from 5.0 and easily beating the forecast of 6.8. Clearly, financial analysts and institutional investors are feeling more upbeat about economic conditions over the next six months. There is significant pent-up demand after months of health restrictions, and if the rollout can get on track, the Eurozone economy should improve. The ECB expects growth of 1.7% in the second quarter, which would be a decent foundation for economic growth in 2021.
The U.S. dollar has lost some of its lustre, as U.S. Treasury yields have retreated. The greenback failed to take advantage of a stellar nonfarm payrolls report on Friday, which rose to 916,000, up from 379,000. With the Biden administration working on a massive infrastructure package, there are expectations that upcoming NFP prints will exceed the 1-million mark, as the U.S. economy continues to gather steam.
EUR/USD Technical
- EUR/USD is testing resistance at 1.1844. If the pair closes above this line, it will target the 1.19 level, with the next resistance line at 1.1893
- On the downside, there is support at 1.1754, followed by a support line at 1.1713
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.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.