EUR/USD rebounds from 1.2000 and turns positive for the day
|- Euro approaches daily highs amid a retreat of the US Dollar.
- Lower yields and higher equity prices boost EUR/USD.
The EUR/USD rose further after bottoming on European hours at 1.1997. The euro rose quickly back above 1.2000. It tested again level under that area, only to strengthen, making a larger rebound to 1.2038, slightly below the Asian session high. It remains above 1.2025, supported by a decline of the US dollar.
Higher equity prices and lower US yields pushed the DXY back into negative territory. The Dow Jones is up by 0.58% at daily highs while the Nasdaq now gains 0.77%. The 10-year yield stands at 1.573%.
A busy Thursday ahead
After days with no relevant economic data from the US, jobless claims data is due on Thursday. Also will be the turn of the Existing Home Sales report. The key event of the day will be the European Central Bank (ECB) meeting. No change in the policy is expected. Attention will be on Lagarde’s press conference and about the signs for future announcements.
“We look for recent ranges to remain intact in EURUSD as the ECB is unlikely to provide a strong directional cue, and market attention will pivot quickly to next week's FOMC. The generally-upbeat message we expect suggests some moderate upside risks for spot, but only a very hawkish outcome should see a clear break higher as the 100-DMA (1.2058) helps provide a cap”, said analysts at TD Securities.
Technical levels
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