FXStreet (Edinburgh) - The single currency is now accelerating its rebound from the mid-1.3500, lifting the EUR/USD back to the vicinity of 1.3580.

EUR/USD firmer with mixed ZEW

The EUR is gaining traction despite the mixed data from the German ZEW Survey, showing above-estimates Current Situation (67.7) although the Economic Sentiment dropped from previous readings in both Germany and the EMU. The pair continues to be supported by recent comments by ECB officials, although interim gains would be limited as the FOMC gathering looms. Jane Foley. Senior FX Strategist at Rabobank, assessed, “It follows that a strong USD recovery and a resultant drop in the EUR/USD exchange rate would make the ECB’s fight against the deflationary risk an easier task. On the assumption that the Fed does not alter its position much at the June 18 FOMC we expect that the push lower in EUR/USD will be slow. Our 12 mth target lies at EUR/USD1.30. That said, we have edged down our 1 and 3 mth forecasts to 1.3600”.

EUR/USD key levels

As of writing the pair is losing 0.02% at 1.3569 with the immediate support at 1.3521 (low Jun.13) ahead of 1.3512 (low Jun.12) and then 1.3503 (low Jun.5). On the flip side, a breakout of 1.3587 (high Jun.17) would open the door to 1.3590 (Tenkan Sen) and finally 1.3602 (high Jun.10).

Related Articles
  1. Forex Education

    Four Currencies Under the Spotlight in 2016

    With currencies having become the “tail that wags the dog,” in terms of their impact on the global economy, these four currencies will be under the spotlight in 2016.
  2. Forex Fundamentals

    These Currencies Are The Biggest Losers Of The Stock Downturn

    Here’s a list of the hardest-hit currencies amid the global stock market mayhem.
  3. Forex Strategies

    Will the Euro Continue to Rally? (EUO)

    The euro is rallying. Should investors chase this performance or is the real opportunity on the other side of the trade?
  4. Investing News

    China’s Forex Reserves Dropped Significantly

    China’s forex​ reserves dropped by a record $93.9 billion at the end of August to $3.56 trillion because the Central Bank has been selling dollars to provide a cushion to the falling yuan​
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  7. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  8. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  9. Investing

    Financial News Comparison: Bloomberg Vs. Reuters (BAC, GOOG)

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  10. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
COMPANIES IN THIS ARTICLE
Trading Center