EURUSD printed the biggest gain of a day in 2.5 months on Monday. The increase neutralized the immediate downtrend. A breakthrough could, however, remain elusive due to trade tensions between the United States and France. Here is the EURUSD Fundamental Analysis of 03 December, 2019.
03 December, 2019 | AtoZ Markets – EURUSD jumped 0.58% on Monday, posting its biggest single-day increase since 17 September. Monday’s strong rise to 1.1090, its highest level in 12 days, offset the immediate downtrend.
EURUSD Fundamental Analysis – 03 December 2019
The outlook will become bullish if the pair rises above the November 21st high at 1.1097. This would confirm a double bottom break on the daily chart and create room for 1.12.
A breakout seems likely if we take into account the dismal US data released Monday in the United States. The ISM Manufacturing Purchasing Managers’ Index fell to 48.1 percent in November from 48.3 percent in October, confirming a fourth consecutive month of contraction.
However, the dollar has already suffered losses due to weak data, and attention could be focused on renewed trade tensions, in which case a breakout may remain elusive.
US ISM NY Business Conditions Index
The Trump administration said Monday night that it plans to impose tariffs of up to 100% on about $ 2.4 billion worth of French goods. That is in retaliation for France’s decision to impose a tax on digital services.
On the data side, the Eurozone producer price index is expected to be released at 10:00 GMT. And the US ISM-NY Business Conditions Index (Nov) will be released at 14:45 GMT. However, these datasets rarely have a significant impact on foreign exchange markets. The euro could, however, be influenced by the speech of Benoir Coeure, a member of the European Central Bank (ECB), scheduled at 17:30 GMT.
US President announced his intention to restore tariffs on steel and aluminum in Brazil and Argentina. After the dollar climbed, and Asian currencies also moved sideways Tuesday morning in Asia.
The US dollar has gained ground on morning trading in Asia. The Dollar Index tracks the greenback versus a basket of currencies. However, it was up 0.07% at 97.92 at 20:50 ET.
US-China Trade remained at the center of traders’ concerns. Uncertainty lingering after Trump said Monday that last week’s signing of two laws in the United States. That support protesters in Hong Kong would not facilitate negotiations, but that China still wants an agreement.
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