22 Nov 2019
ECB President Lagarde is set to give her first major speech, pushing the EUR/USD pair over the 1.1050 mark, in familiar ranges. The pair dropped to a 50-day SMA and 50% Fibonacci level of the 1.0879-1.1180, potentially boosting the bearish outlook. Additionally, the 100-day SMA is in the 1.1085 region.
A late pickup in the American Dollar demand hindered the EUR/USD’s steady move. Optimism around the trade war talks allows the U.S. Treasury bond yields to pick up, broadening support to the USD. China was said to extend trade negotiations with the U.S., helping to boost the pair once again.
Moreover, the South China Morning Post suggested that tariffs on Chinese goods, initially planned to go into effect on December 15th, will be delayed, regardless how the next talks conclude. Preliminary Euro-zone PMI prints will also be released, paired with Lagarde’s speech, will affect the EUR/USD trading value.
The Cable trades above the 1.29 handle, as the Conservatives currently seeming to be in the lead ahead of the December 12th general election. The GBP/USD ended with losses for the third consecutive session, below the 1.2900 handle. The focus now shifts onto the first preliminary readings of the UK Manufacturing and Services PMI.