EUR/USD Current price: 1.1684
- ECB's monetary policy Accounts cooled down hopes for a sooner rate hike.
- US June inflation matched market's expectations, remained above 2.0%.
The EUR/USD pair fell to a fresh weekly low of 1.1649 but managed to recover some ground afterward, unable, anyway, to move past 1.1700. The sour sentiment that dominated markets in the previous days was reversed, with equities rising in all the major markets, with safe-havens' yen and CHF plummeting to multi-month lows against the greenback. The ECB released the Minutes of its latest meeting, which reiterated the dovish tone offered by Draghi in the press conference following the latest decision, without shedding new light over a possible date for an upcoming rate hike. In the data front, Germany released June inflation figures, which matched market's expectations, up 2.1% YoY, while the U offered May Industrial Production figures, up by a solid 1.3% from the previous month, and 2.4% from a year earlier. In the US, June inflation was up 0.1% in the month, slightly below the 0.2% increase expected, although the core readings, excluding food & energy, met market's forecast by rising 0.2% MoM and 2.9% YoY.
This Friday, Germany will publish Wholesale Price index for June, a minor report, while the US will offer the July preliminary Michigan Consumer Sentiment Index, expected at 98.2, and the semiannual Fed Monetary Policy Report.
Despite closing lower against all of its major rivals, the greenback remains the strongest currency across the board, with the ongoing retracement considered just corrective. The pair's 4 hours chart shows that technical indicators remain in negative territory, with the RSI flat at 45, while the price flirted with directionless 100 and 200 SMA to find some stability right above the indicators, but is also now below a bearish 20 SMA, and the 1.1720 Fibonacci resistance, all of which leans the risk toward the downside. Renewed selling interest below the 1.1660 level could result in a test of 1.1590 should investors resume dollar's buying.
Support levels: 1.1660 1.1620 1.1580
Resistance levels: 1.1720 1.1755 1.1790
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.