EUR/USD turns positive near 1.1160 post US PCE

After bottoming out inf the 1.1120 region, or new YTD lows, EUR/USD regains some composure and returns to the positive territory near 1.1160 at the en  |  28/01/2022 13:55
  • EUR/USD manages to rebound from 2022 lows.
  • US Core PCE rose 4.9% YoY in December, more than estimated.
  • US final Consumer Sentiment is due next in the docket.

After bottoming out inf the 1.1120 region, or new YTD lows, EUR/USD regains some composure and returns to the positive territory near 1.1160 at the end of the week.

EUR/USD looks contained near 1.1100

EUR/USD now reverses part of the recent intense selloff and regains the 1.1150/60 band on the back of the knee-jerk in the greenback.

Indeed, the US Dollar Index (DXY) trims earlier gains along with the loss of upside momentum in yields in the short end of the curve, which came under pressure after hitting 2-year peaks near 1.23%.

The pullback in the dollar came after US inflation figures measured by the Core PCE rose 4.9% YoY in December, more than initially estimated, while the headline PCE gained 5.8% from a year earlier. Additionally, Personal Income expanded 0.3% MoM in the same period and Personal Spending contracted 0.6% MoM.

Later in the session, the final Consumer Sentiment print for the month of January will close the weekly calendar.

EUR/USD levels to watch

So far, spot is up 0.10% at 1.1156 and faces the next up barrier at 1.1308 (55-day SMA) seconded by 1.1369 (high Jan.20) and finally 1.1450 (100-day SMA). On the other hand, a break below 1.1121 (2022 low Jan.28) would target 1.1100 (round level) en route to 1.1000 (psychological level).

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com