EUR/USD Current price: 1.1313

  • US inflation rose by less-than-anticipated in May, Fed's rate cut mostly priced in.
  • ECB's Draghi warned about the persistent risk related to global trade.

The EUR/USD pair flirted with its early June top, posting a third consecutive higher high at 1.1341, as the market rushed away from the greenback once again, following news coming from China. The PboC surprised speculative interest by setting a higher-than-anticipated reference rate for the Yuan, another measure taken on the back of the trade war between the world's two largest economies. Asian share market's edged lower, moreover as Wall Street closed in the red, while European equities trimmed early gains and are also down. ECB´s Draghi gave the opening remarks at the central bank's conference on Central, Eastern, and South-Eastern European countries, and warned about the headwinds global trade is facing in the recent years, exacerbating the dismal mood but also weighing on the shared currency, which retreated from the mentioned high.

The European macroeconomic calendar had nothing relevant to offer, while the US released first, MBA Mortgage Applications for the week ended June 7, which rose 26.8%, and just now May CPI data. According to the official report, inflation in the US rose by just 0.1% MoM in May and by 1.8% YoY, while the core annual reading came in at 2.0%, all of them slightly below the market's expectations.

The dollar initially reacted negatively to the news, although it quickly changed direction, now trading at its highest for the day against the common currency. The EUR/USD pair, however, keeps holding above the 1.1300 figure, with the upside potential fading short-term, as, in the 4 hours chart, the pair is finding some support around a bullish 20 SMA, while despite easing, technical indicators remain within positive levels. The long-term broken trend line comes in at around 1.1265, the level to break for the pair to turn bearish again.

Support levels: 1.1300 1.1265 1.1220

Resistance levels: 1.1350 1.1385 1.1420

View Live chart for the EUR/USD

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: Teasing range breakdown ahead of Powell speech

EUR/USD has been restricted to a narrow range of 1.1115-1.1063 since last Friday. The pair is currently probing the lower edge of the trading range. A range breakdown, if any, could trap sellers on the wrong side of the market if Fed's Powell sounds dovish.

EUR/USD News

GBP/USD retraces from 3-week high while heading into G7, Jackson Hole

GBP/USD trims latest gains as Tories warn PM Johnson. The increasing scope of soft Brexit triggered the pair’s earlier surge. G7, global central bankers’ appearance at Jackson Hole will be followed for fresh impulse.

GBP/USD News

USD/JPY: Yen dips as Japan's inflation hovers at 2-year lows

The Japanese Yen is losing altitude in Asia, possibly due to dismal Japanese inflation data and the resulting rise in the dovish Bank of Japan (BOJ) expectations. Japan's core inflation remained at two-year lows in July.

USD/JPY News

The audiences of Chairman Powell

The FOMC vote in July to drop the fed funds rate 0.25% for the first time since December 2008 was 8-2 with some members who approved the reduction doubting its logic or necessity. 

Read more

Gold: Looks south with symmetrical triangle breakdown on 4H

Gold has dived out a symmetrical triangle pattern on the 4-hour chart. The daily chart indicators also favor a drop to $1,480. Essentially, sellers have come out victorious in a tug of war with the bulls.

Gold News

Majors

Cryptocurrencies

Signatures