With not a lot of market-moving reports on the docket, traders will likely focus on the dollar’s latest trends.
Will EUR/USD bulls push for another retest of the 1.2000 handle?
Before we talk about the setup, you might want to check out the top headlines that moved the majors during the Asian session:
- BRC: UK retailers step up their discounting in August
- NZ export prices hit new high in Q2 2020
- New Zealand’s central bank signals openness to looser policy
- Australian 2Q20 GDP falls 7.0% in Q2 2020
- Dollar buoyed by upbeat U.S. economic data; Aussie falls
Upcoming Potential Catalysts on the Economic Calendar:
- Germany’s retail sales at 6:00 am GMT
- U.K.’s Nationwide house price index at 6:00 am GMT
- Eurozone’s PPI at 9:00 am GMT
- U.S. ADP report at 12:15 pm GMT
- BOE Governor Bailey to give a speech at 1:00 pm GMT
What to Watch: EUR/USD
Asian session traders took cues from their U.S. counterparts and bought the Greenback on strong U.S. data and a bit of profit-taking.
Can the dollar sustain its strength today? EUR/USD is finding support at the 1.1900 previous support and resistance area after getting rejected at the 1.2000 major psychological handle.Germany’s is scheduled to print its retail sales numbers and word around is that we’ll see some growth after a slight dip in June.
Meanwhile, today’s U.S. ADP report is expected to reflect an addition of at least 1 million jobs in August. If the report comes in as or better than markets are expecting, then we could see a bit more optimism that might weigh on the safe-haven dollar.
A return to risk-taking could take cement EUR/USD’s 1.1900 levels as support and encourage another retest of the big 1.2000 level.
Further dollar gains or euro weakness, however, could drag EUR/USD back to its July and August range levels. I’m talking about areas of interest between 1.1720 – 1.1800, yo!