EUR/USD bounces off lows near 1.00760 on risk-on mood
After bottoming out in the area of new 2-month lows near 1.0760, EUR/USD manages to pick up the pace and approach the key barrier at 1.0800 the figure at the end of the week. The improved sentiment in the risk-linked galaxy underpins the pair’s recovery to the vicinity of the 1.0800 hurdles on Friday amidst profit-taking in the greenback and a broad-based optimism among market participants. Indeed, rising hopes that US policymakers could clinch a deal over the debt ceiling issue in the next few days continue to prop up the appetite for the riskier assets and lend much-needed oxygen to the pair. Nothing to write home about from President L. Lagarde’s earlier comments, after she acknowledged the bank is “heading towards more delicate decisions going forward”.
Still around the ECB, the bank’s Economic Bulleting noted that price pressures remain strong while wage pressures have strengthened. In the domestic calendar, Producer Prices in Germany rose 0.3% MoM and 4.1% in the year to April, both prints coming in above estimates. In the US, NY Fed J. Williams (permanent voter, centrist) and FOMC Governor M. Bowman (permanent voter, centrist) are due to speak along with a panel discussion with the participation of Chair J. Powell and ex-Fed B. Bernanke.
EUR/USD manages to reclaim some ground lost in the last three sessions and now attempts to retake the 1.0800 region on Friday. The movement of the euro's value is expected to closely mirror the behavior of the US Dollar and will likely be impacted by any differences in approach between the Fed and the ECB with regard to their plans for adjusting interest rates. Moving forward, hawkish ECB-speak continues to favor further rate hikes, although this view appears in contrast to some loss of momentum in economic fundamentals in the region. So far, the pair is gaining 0.27% at 1.0798 and the breakout of 1.0866 (55-day SMA) would target 1.1095 (2023 high April 26) en route to 1.1100 (ground level). On the flip side, immediate contention comes at 1.0759 (monthly low May 19) seconded by 1.0712 (low March 24) and finally 1.0516 (low March 15).
EUR/USD manages to reclaim some ground lost in the last three sessions and now attempts to retake the 1.0800 region on Friday. The movement of the euro's value is expected to closely mirror the behavior of the US Dollar and will likely be impacted by any differences in approach between the Fed and the ECB with regard to their plans for adjusting interest rates. Moving forward, hawkish ECB-speak continues to favor further rate hikes, although this view appears in contrast to some loss of momentum in economic fundamentals in the region. So far, the pair is gaining 0.27% at 1.0798 and the breakout of 1.0866 (55-day SMA) would target 1.1095 (2023 high April 26) en route to 1.1100 (ground level). On the flip side, immediate contention comes at 1.0759 (monthly low May 19) seconded by 1.0712 (low March 24) and finally 1.0516 (low March 15).