EUR/USD Gains On ZEW Data, Trade, Ahead of FOMC

EUR/USD is edging higher versus the US dollar following better than forecast ZEW Sentiment data, easing trade tensions and as investors look to FOMC.

The euro is edging higher versus the US dollar following better than forecast ZEW Sentiment data. German investor sentiment improved to the strongest level in two years. The brighter outlook comes amid hopes that trade tensions are slowly easing, and that the US will avoid a disorderly Brexit from the EU. 

Encouraging sentiment data comes following unexpectedly strong German export data on Monday and increasing signs that the German economy could narrowly avoid a contraction in the final quarter of the year, after avoiding a recession in the third quarter. Germany is by no means out of the woods. However, there are signs that Europe’s largest economy could be in the brink of turning around.

Dollar eases on improved risk, FOMC Ahead
The dollar slipped lower as risk improved on rumours that the US will not hike trade tariffs on Chinese imports on 15th December. This can only mean that the two sides are close to a phase one deal, surely?

Investors will now look ahead to the FOMC rate announcement tomorrow. After cutting interest rates three times in 2019, policy makers are of the impression that they have done enough to stabilise the economy. Given the resilience in the labour market and the calm in the markets now compare to four months ago, then this assumption could well be spot on. With no change in monetary policy expected, traders will focus on the dot plot and Jeremy Powell’s press conference.

Levels to watch
EUR/USD trade above its 50, 100 and 200 sma, a bullish chart.  Resistance can be seen at $1.1094, $1.1115 prior to $1.1140.
Support can be seen at £1.1040, $1.1015 before $1.10. We would be looking for a break below $1.1040 to negate the current bullish trend.


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.