The single European currency is in defensive mode trying to limit yesterday's losses and defend the 1,08 level.

The Minutes from Fed's latest meeting released yesterday acted as a trigger for the US currency to return to the fore as inflation continues to be the Fed's main concern and several members of the Central Bank retain significant doubts about the path of key rates cuts in in 2024.

At the moment, the biggest probability is gathered for the first rates cut by Fed in September, which in fact after yesterday's announcement presented a small retreat.

I remind once again that the US dollar is currently holding higher interest rates against the Euro with the prospect of this gap widening in June which could give to US currency further room for gains.

On the other hand the European currency as reminded once again last week maintains the capacity for very good reactions.

Today's agenda is quite interesting with indicators on manufacturing and services sectors in the Eurozone and US standing out.

As they are harbingers of the path of economies investors watch them with particular attention and a possible significant deviation could increase volatility and strongly affect the exchange rate.

Αt the moment the US currency appears to be holding a slight advantage with the mild rise in US Treasury yields supporting the US dollar.

This mild positive momentum in the US currency could be maintained and today and if there are no surprises in news the 1,08 level could soon under challenge.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD clings to modest recovery gains above 1.0700

EUR/USD clings to modest recovery gains above 1.0700

EUR/USD clings to small recovery gains above 1.0700 on Monday following the previous week's slide. European political uncertainty continues to undermine the Euro and cap the pair's upside, while the US Dollar consolidates recent gains amid a tepid market mood. 

EUR/USD News

GBP/USD remains pressured below 1.2700 amid cautious mood

GBP/USD remains pressured below 1.2700 amid cautious mood

GBP/USD stays on the back foot and trades below 1.2700 in the second half of the day on Monday. The hawkish Fed expectations and a softer risk tone keep the US Dollar afloat, exerting downward pressure on the pair. Fedspeak remains next in focus. 

GBP/USD News

Gold retreats below $2,320 as US yields rebound

Gold retreats below $2,320 as US yields rebound

Gold struggles to build on Friday's gains and trades in the red below $2,320 on Monday. The benchmark 10-year US Treasury bond yield rebound above 4.25% following last week's slide, making it difficult for XAU/USD to gain traction.

Gold News

XRP stuck below $0.50 as Ripple CLO says SEC has abandoned demand for $2 billion fine

XRP stuck below $0.50 as Ripple CLO says SEC has abandoned demand for $2 billion fine

XRP struggles to make a comeback above sticky resistance at $0.50 on Monday as traders continue to assess the legal skirmishes between blockchain firm Ripple and the US Securities and Exchange Commission (SEC).  

Read more

Five fundamentals for the week: French opinion polls, US Retail Sales and Bank of England eyed Premium

Five fundamentals for the week: French opinion polls, US Retail Sales and Bank of England eyed

Politics is back, with elections in France rocking markets. US Retail Sales and flash PMIs will provide insights into America's slowdown. The Bank of England announces its decision after all-important CPI data.

Read more

Majors

Cryptocurrencies

Signatures