- EUR/USD remains sidelined around intraday high during the first profit-making day in three.
- China-linked headlines, holiday mood allow traders to pare recent losses ahead of the key US data.
- Market sentiment remains divided as hawkish Fed bets jostle with cautious optimism over economic transition.
- Bears need strong prints of US PCE Price Index, Durable Goods Orders to retake control as ECB hawks defend buyers.
EUR/USD clings to mild gains near 1.0610 as the pair buyers retake control after a two-day losing streak. That said, the major currency pair’s latest inaction could be linked to the market’s cautious mood, as well as the holiday season, during early Friday in Europe.
Talking about the positives, optimism over China’s pro-growth policies and the People’s Bank of China’s (PBOC) biggest weekly cash injection in two months seems to underpin the mildly positive sentiment of late. The same joins the chatters surrounding Evergrande’s nearness to an offshore debt restructuring plan to underpin the firmer sentiment.
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