After a brief test of session lows around 1.0960, EUR/USD has managed to regain traction and is now testing the area of daily highs around 1.0990.
EUR/USD firmer, USD selling picks up pace
The now softer tone around the greenback is helping the pair to extend its rebound to the vicinity of the psychological handle at 1.1000 following the opening bell in Euroland.
Spot is once again testing the key resistance area near 1.1000 the figure as the selling mood around the buck seems to have resumed its recent momentum despite expectations of a Fed’s rate hike by end of 2016 remains firmly on the rise.
In fact, according to CME Group’s FedWatch tool, the probability of higher rates in December has ticked higher to 72.5% from yesterday’s 68%.
The better performance from yields in the German money markets are lending extra support to EUR for the time being, with the 10-year benchmark staying around multi-month peaks in the boundaries of 0.20%.
Nothing scheduled in the euro region today, whereas Markit’s manufacturing PMI and the ISM Manufacturing will grab all the attention across the pond.
EUR/USD levels to watch
The pair is now up 0.02% at 1.0982 with the next hurdle at 1.0995 (high Oct.28) followed by 1.1022 (7-month resistance line) and then 1.1041 (post-ECB spike Oct.20). On the other hand, a break below 1.0820 (low Mar.10) would target 1.0709 (2016 low Jan.5) en route to 1.0538 (low Dec.3 2015).