Since the beginning of this month, EURUSD has been recovering gradually, after two weeks of steep losses in the second half of September. Yesterday, the euro has finally broken above the 1.10 handle amid a broad-based weakness in the greenback. Risk sentiment improved dramatically due to positive developments in Washington, with Trump said trade talks between the US and China were “going very well”. As a result, trade deal hopes lifted the markets and the positive momentum remains on Friday.
EURUSD holds marginally above the 1.10 level and keeps the bullish bias intact. German CPI figures came in line with market expectations and thus failed to affect the common currency. In the short-term, traders will continue to follow trade developments, with focus now shifts to the upcoming negotiations between Trump and Chinese Vice Premier Liu He.
Apart from trade talks, traders will monitor signals from major central banks. The statements from ECB’s Draghi could somehow temper euro’s bullishness should he express a dovish tone on the economy or monetary policy. Also, Fed’s Rosengren and Kaplan are to deliver a speech later today, with their comments could also affect EURUSD.