Euro in focus as Dollar weakness continues

Frank Walbaum

Important news this week

Thu, 10th, 14:15 CET EU Interest Rate Decision.

Thu, 10th, 14:30 CET US Producer Price Index.

Thu, 10th, 14:45 CET EU ECB Press Conference.

Fri, 11th, 08:00 CET UK Gross Domestic Product.

Fri, 11th, 14:30 CET US Core Consumer Price Index.

Euro in focus as Dollar weakness continues

Oil continues to rise, with Brent holding above the $100 level as ongoing Middle East tensions keep supply risks elevated. The prolonged disruption around the Strait of Hormuz remains an important driver for energy markets and could keep inflation concerns alive.
Metals remain positive, supported by continued Dollar weakness. Gold is benefiting particularly from the softer USD, while geopolitical uncertainty and concerns about US fiscal stability are providing additional support for safe-haven demand.
The Dollar Index continues to weaken and has moved below an important weekly support zone. This keeps pressure on the greenback and could provide further room for EURUSD and other major currencies to rise. EURUSD is approaching the 1.1680 resistance level — a break above could open the door for further Euro gains.

Market talk

The ECB rate decision is the key event today. With the Euro already supported by broad Dollar weakness, the ECB's guidance will be crucial for the next move. A less dovish-than-expected message could strengthen the Euro further, particularly if EURUSD manages to break 1.1680.
The Yen is another important story. JPY strength is continuing as markets increasingly expect a more hawkish BoJ stance, while the unwinding of carry trades is adding further support.
Crypto remains largely sideways, suggesting that risk appetite has not yet translated into a strong move in digital assets. With oil rising and inflation risks returning, markets could remain cautious despite the weaker Dollar.

Tendencies in the markets

Equities sideways, USD weak, crypto sideways, oil strong, metals positive, JPY stronger.

Author

Frank Walbaum

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