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EUR/USD pegged a fresh 15-week high after testing just above the 1.1000 major handle.
The pair is settling back as Tuesday’s trading session wraps up and heads into the close.
Wednesday brings Eurozone Consumer Confidence, US GDP growth.
The EUR/USD is easing back into the 1.0980 neighborhood after tipping into a 15-week high just above 1.1000, bolstered by a broad-market uptick in risk appetite, pushing the US Dollar (USD) down across the board and into the red against all other major currencies on Tuesday.
Fed’s Waller: I am increasingly confident that policy is currently well positioned
Markets mixed in the first half of Tuesday’s trading before markets surged in the US session, with risk bids climbing and the Greenback facing a selloff after Federal Reserve (Fed0 Governor Christopher Waller noted that he was confident that monetary policy is tight enough to bring inflation back down to 2%.
Waller went on to note that he sees no reason to maintain elevated interest rates as long as inflation continues to settle lower, sparking a risk rally that saw the broader market lurch higher, dragging down the US Dollar.
Wednesday brings a fresh round of Eurozone Consumer Confidence and November’s Economic Sentiment Indicator, as well as another printing of quarterly US Gross Domestic Product (GDP) growth.
Eurozone Consumer Confidence is expected to hold steady at -16.9 for November, while the Economic Sentiment Indicator, a measure of European consumers’ confidence in the European economy, is forecast to see a slight uptick from October’s 93.3 to 93.7.
US GDP for the third quarter will be the figure to watch on Wednesday, and the US is expected to see QoQ GDP growth tick upwards from 4.9% to 5.0%.
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the US Dollar.
USD
EUR
GBP
CAD
AUD
JPY
NZD
CHF
USD
-0.28%
-0.47%
-0.25%
-0.49%
-0.68%
-0.50%
-0.25%
EUR
0.28%
-0.19%
0.03%
-0.21%
-0.38%
-0.22%
0.04%
GBP
0.46%
0.19%
0.23%
-0.02%
-0.20%
-0.03%
0.23%
CAD
0.23%
-0.06%
-0.25%
-0.27%
-0.43%
-0.27%
-0.02%
AUD
0.51%
0.21%
0.04%
0.26%
-0.17%
0.01%
0.28%
JPY
0.66%
0.38%
0.20%
0.42%
0.17%
0.16%
0.43%
NZD
0.50%
0.20%
0.03%
0.26%
-0.01%
-0.17%
0.26%
CHF
0.23%
-0.06%
-0.24%
-0.01%
-0.26%
-0.45%
-0.27%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
The Euro’s rally fueled by Greenback-selling across the broader FX marketspace saw the EUR/USD clipping into the 1.1000 handle before settling back into the Tuesday close, but still climbing three-tenths of a percent on the day.
The EUR/USD easily broke through the 200-day Simple Moving Average (SMA) in mid-November near the 1.0800 handle, and ongoing EUR bullishness is sending the pair steadily higher as the USD waffles.
The pair has potentially climbed too far, too fast with the 50-day SMA still trading well below prices and in bearish territory, and the moving average is currently rotating towards the topside from just north of 1.0650.
The Relative Strength Index (RSI) is flashing warning signs that the EUR/USD may have gone too far, too quickly with the signal line testing into the overbought boundary line, and the pair could see an extended pullback if bears are able to capitalize on any profit-taking.
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