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EUR/USD Retains a Firm Feel Into 2021. Focus on US Politics/NFP.

EUR
MNI (London)
  • EUR/USD posted a 2020 high of $1.2310 on Dec30, touched $1.2309 on Dec31 before it eased to $1.2226 through the month-end fix (despite suggested EUR/USD demand to be seen), easing on to $1.2209 in post fix trade before closing the year at $1.2216.
  • EUR/JPY demand ahead of the Tokyo open helped EUR/USD to edge up to $1.2259, as the USD continued to feel negative weight as it had done into the close of 2020.
  • Attention on US Georgia's Senate vote (Jan05) with polls suggesting Biden ahead. However, a Democrat win, with its potential implications for tax, weighed on equities and provided for some counter to the positive risk outlook. EUR/USD eased to $1.2242 but quickly met willing buyers which lifted it to a fresh intraday high of $1.2259 into Europe.
  • Minor resistance seen into $1.2260(50% $1.2310-1.2209), more at $1.2271-86(61.8%-76.4%) ahead of stronger interest between $1.2300/10. Support $1.2220, more into $1.2200 ahead of $1.2180 then $1.2160/50.
  • EZ Mfg PMI (final) data due this morning. US Mfg PMI at 1445GMT. US Employment Report Friday moves into view.
  • Fed speakers include Evans, Bostic and Mester.
  • MNI Techs: EURUSD ended last year firm despite trading lower Friday. We have recently highlighted that daily trend condition is overbought and suggests the pair is due a correction. Break higher last week though puts this on hold. The resumption of the uptrend signals scope for 1.2353, Apr 20, 2018 high ahead of 1.2363, a Bollinger band ceiling. On the downside key trend support lies at 1.2130, Dec 21 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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