EUR/USD extends gains, eyes 1.3800

FXstreet.com (Córdoba) - The EUR/USD extended gains to its highest level in nearly 2 years following the latest string of US data including better-than-expected Richmond Fed manufacturing index and construction spending.

EUR/USD reaches highest since Nov 2011

The EUR/USD broke above previous highs and peaked at 1.3768 in recent dealings as diminishing prospects the Fed could begin taper stimulus this year weighed on the dollar. At time of writing, EUR/USD is trading at 1.3765, recording a 0.6% daily gain.

EUR/USD eyes 1.3800

On the upside, if EUR/USD breaks above 1.3768, next resistances could be found at 1.3800 (psychological level) and 1.3808 (Nov 14 2011 high). On the other hand, supports are now seen at 1.3710 (former 2013 high) and 1.3660 (daily low).

US: Richmond Fed Manufacturing Index rises in October against forecasts

The US Richmond Fed Manufacturing Index grew to 1 point in October after remaining flat in September, the Federal Reserve Bank of Richmond informed on Tuesday. Analysts expected the indicator to stay unchanged for another month.
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Flash: New Year dollars – JP Morgan

Research teams at JP Morgan said this month’s Washington wars raise understandable questions about enduring damage to the dollar as a reserve currency, since the political process creates non-zero default risk in an asset which should be default-free. However, they said the damage to the dollar therefore looks more cyclical than structural.
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