EUR/USD firmer, clinches 1.1200

FXStreet (Edinburgh) - The European currency keeps alive its march north on Wednesday, now pushing EUR/USD to test the 1.1200 handle.

EUR/USD in 5-week tops

The buying sentiment around the euro has been gathering pace since early trade today. Same as yesterday, this morning’s ‘fixing’ of the Yuan by the PBoC has prompted market participants to intensify the USD-selling, taking the greenback to 4-week lows when measured by the US Dollar Index.

Adding to the USD weakness, the recent moves in the Yuan have also pushed back market expectations of a Fed’s lift-off in September, which are now gyrating around 30% after rising to almost 60% pre-Payrolls on Friday.

EUR/USD levels to watch

As of writing the pair is advancing 1.39% at 1.1196 with the next hurdle at 1.1215 (high Aug.12) ahead of 1.1244 (high Jun.30) and then 1.1278 (high Jun.29). On the downside, a break below 1.1057 (low Aug.12) would target 1.0961 (low Aug.11) en route to 1.0855 (low Aug.7).

GBP/USD ready to test July highs

GBP/USD continued to rise during the American session and reached the strongest level since July 30. The pair broke above 1.5630 and climbed to 1.5659. It was trading at 1.5640, 60 pips above yesterday’s closing price.
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