Breaking News: EUR/USD surges above 1.1800 as Draghi goes hawkish

Yohay Elam FXStreet

European Central Bank President Mario Draghi said that domestic price pressures are rising in a testimony before a committee of the European Parliament in Brussels. He said there are shortages in some sectors and that the pick up in wages is projected to continue. He sees a relatively vigorous pick in underlying inflation.

Draghi also said that the ECB projections foresee inflation excluding food and energy reaching 1.8% in 2020.

More: ECB's Draghi: Interest rates to remain at present levels at least through summer of 2019

The EUR/USD broke above 1.1800, surpassing the highs seen on Thursday and trading at the highest levels since mid-July. Further resistance is seen at 1.1825 and 1.11850, which was the mid-June high. Support is at 1.1750 and 1.1725.

Here is how the move looks on the chart. Click here or on the image to see a live chart:

EUR USD Technical analysis September 24 2018

In his latest press conference, Draghi was not as dovish as he usually is. However, the ECB left its economic projections unchanged back then. His comment about core inflation rising to 1.8% is especially hawkish as the most recent read is only 1%.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold eases within range, hovers around $4,360

Gold turned south early in the American session on Thursday, but holds within familiar levels as investors await more clues on US monetary policy. The August US Producer Price Index report and the US Consumer Price Index due on Friday will likely shape the market's tone ahead of the Federal Reserve monetary policy announcement next week.

Raydium's rally signals trend reversal amid network growth, buyback

Raydium maintains a firm bullish tone, posting nearly 9% gains, and extending its 41% rally from Sunday. Solana-based Decentralized Exchange is witnessing a surge in network activity and growth amid new token launches. The technical outlook for Raydium signals a potential upside toward $1.50 as momentum holds firm despite overbought conditions.

Jobs opened the door for the Fed — inflation decides whether it walks through

The latest US jobs report did not end the debate over the Federal Reserve’s (Fed) next move. It may have done something more subtle: it gave policymakers permission to keep their options open. After months of softer labour market signals, August delivered a stronger-than-expected rebound.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.