Strong EUR vs weak USD

Strong EUR vs weak USD

Fundamentals

  • The market sentiment is mainly driven by optimistic vaccine news and hopes for the new US stimulus package. US officials are considering now the aid of $908 billion, much larger than the previously proposed.
  • As for the vaccine news, the UK finally approved the emergency use of Pfizer’s vaccine. The widespread vaccinations will start in the UK as early as next week. Other countries are also going to do the same soon. The first vaccine approval pushed the safe-haven USD even lower.
  • The US ADP report showed that private sector employment increased by 307 000, while the forecast was 433 000. That data also added pressure on the already fragile USD.
  • The Brexit progress continues. Yesterday, EU chief Brexit negotiator Michel Barnier claimed that “a deal hangs in the balance ... differences still persist on the three main issues”. The British pound dropped after Barnier’s comment. Notably, Brexit talks continue for 1 623 days, and it’s just 28 days left till the deadline. It’s said that the deal may be reached next week during the December European Council summit.
  • Follow unemployment claims, ISM Services PMI, and OPEC+ meeting.
Watch our daily video! 

Technical tips

EUR/USD

EUR/USD keeps rallying up driven by the weak US dollar. If it manages to break above the psychological mark of 1.2150, the way up to 1.2200 will be clear. In the opposite scenario, if it falls below yesterday’s low of 1.2055, it may drop back to the support of 1.2000. Be cautious as the price is more likely to pull back from support levels to the upside rather than break through to the downside.

EURUSDH4.png

Gold

XAU/USD is approaching the 38.2% Fibonacci retracement level of $1 840. Some selling pressure is expected near this area. If it finally manages to break through it, the doors towards the 50% Fibonacci retracement level of $1 865 will be open. On the flip side, the move below yesterday’s low of $1 810 will drive gold lower to the key psychological mark of $1 800.

XAUUSDH4.png

EUR/GBP

EUR/GBP has finally escaped the descending channel it had been trading since September. If it jumps above yesterday’s high of 0.9068, the way up to October’s high of 0.9130 will be clear. In the opposite scenario, if it drops below the 200-period moving average of 0.9000, the way down to Tuesday’s low of 0.8945 will be clear.

EURGBPH4.png

WTI oil

WTI oil is edging higher ahead of the OPEC+ meeting, where the crucial decision will be made. The main topic is the oil output cuts. The move above yesterday’s high of $45.65 will drive oil to $46.00. Support levels are $45.00 and $44.65. Follow the OPEC+ decision as it will have a huge impact on oil. If they decide to prolong output cuts, oil prices will surge. Otherwise – drop. To trade WTI oil, you need WTI-21F.

WTI_OilH4.png

   TRADE NOW

Similar

News for The Week
News for The Week

US stock markets started falling, while the US dollar is rising. What to expect from

Latest news

NFP, Oil, and US Stocks Highlight This Week
NFP, Oil, and US Stocks Highlight This Week

Welcome to the first week of October!  As usual, at the start of the week, we are looking for valuable insights that will bring us profits in trading. Let’s observe the main events. 

The US Dollar Is Correcting
The US Dollar Is Correcting

Inflation in Europe was released better than the forecast. The preliminary fact was published at 4.3%. What's happening in the markets?

Bearish Signal For The USD
Bearish Signal For The USD

XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera