EUR/USD fails near 100-DMA and retreats

By FXStreet FXStreet (Mumbai) – The EUR/USD pair extends its consolidative mode into mid-Asia and hovers in a tight range near 1.09 handle amid persisting risk-aversion fuelled by overnight oil price decline.

EUR/USD rejected at 100-DMA at 1.0909

The main currency pair extends its retreat from 1.0913 levels and now takes a breather before the next push higher. The major remains underpinned on the back of prevailing risk-off market profile as most Asian equities trade in the red following overnight slump in oil prices and weak China factory reports. At the time of writing, EUR/USD trades 0.10% higher at 1.0896.

Moreover, the EUR/USD pair also found another impetus in the last US session, after the greenback was broadly sold-off on the back of weaker than expected US manufacturing surveys, which added to the negative sentiment around the Fed rate hike bets for this year. The ISM report showed that the US manufacturing sector contracted for the third straight month, coming in at 48.2 in Dec versus 48.5 expectations.

Looking ahead, the sentiment surrounding the stocks and oil markets will continue to influence the major. While a set of employment data from Germany as well as Euro zone will be also closely eyed for fresh cues …read more

Source:: FX Street