EUR/USD Steadies After Its Poor Weekly Start
EUR/USD - H1
The pair had tried to stage a recovery yesterday, but fears around the COVID-19 situation in Europe kept in check and then, US President Biden's pick for the Fed top spot, dealt another blow to it.
The US President, announced on Monday his intent to nominate Mr. Jerome Powell, for a second term as Chair of the Board of Governors of the Federal Reserve System. This boosted the greenback, since he is seen as less dovish compared to Ms. Brainard, who was the main runner-up for the job.
As such, the Euro dropped to fresh 2021 lows, as we had warned form yesterday's analysis and extended those lows earlier today. This has opened the door for larger decline towards 1.1184, but the next major support appears remote at this stage (1.1099).
The common currency steadies as the European traders enter and a recovery effort could be likely. However, we still struggle to see how, at this stage, it can move beyond key 1.1290-1.1300 level.
Investors will now turn to a series of PMIs due shortly, while Wednesday contain a big number of potentially market-moving economic releases, ahead of US Thanksgiving day.
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Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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