EUR/USD Stays Above 1.1550 Despite Poor German ZEW Outlook
The EUR/USD is still trading above the 1.1550 point despite the German ZEW underperforming. The greenback eases from its near highly highs following risk-off mood. Meanwhile, the Fed-ECB monetary policy divergence is still negatively affecting the Euro.
EUR/USD Still Trading Above 1.1550
The European currency has been underperforming in recent trading sessions as the economic policies by the ECB continue to affect its performance. The Euro is currently down by 0.08% against the greenback, with investors still searching for a reason to support the common currency.
The subdued trading action yesterday didn’t stop the EUR/USD pair from ending the day with negative performance. However, the pair has been able to stay above the 1.1550 level despite the Euro’s recent poor performance. If the current market condition persists, then the EUR/USD pair could attempt to reach its October 6 low level of 1.1530 in the coming hours or days.
Today, this month’s ZEW Survey- Economic Sentiment data for Germany and the Eurozone is set to be revealed to investors. Even if the survey indicates a modest recovery in Germany and Europe’s economy, the Euro could still find it hard to attract investors.
The Euro’s poor performance could be linked to the differences in policies between the US Federal Reserve and the European Central Bank. While the Fed is doing everything necessary to ensure smooth economic recovery, the ECB has been a bit laid back with its approach.
Later today, investors will have the chance to look at the NFIB Business Optimism Index and JOLTS Job Openings data from the United States. Market experts are not expecting any wild movement in the EUR/USD pair ahead of tomorrow’s US inflation report and FOMC Minutes.
EUR/USD Could Drop To 1.1530
The EUR/USD pair could drop to the 1.1530 level in the coming hours or trading sessions if the current market condition persists. The bulls will need to defend the 1.1530 level if the pair is to stay above 1.1500. Any decline below that level could likely attract sellers to the pair and see the European currency record more losses.
On the flipside, recovery from the Euro could push the EUR/USD pair towards the 1.1580 (50-period SMA) level. The pair can extend its recovery toward 1.1620 if the bulls can support the Euro in the short term.