EUR drifts back under 1.17 but well supported on dip – Scotiabank

FXStreet Insights Team FXStreet

The Euro (EUR) is marginally softer on the session—but trading nicely off the low as our session gets going, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Further consolidation ahead of another push higher

"Price action suggests some short-term long liquidation in European trade after spot edged back under 1.1690/00. Eurozone data did not help. Q2 GDP data was unrevised at 0.1% Q/Q (1.4% Y/Y) while June Industrial Production was weaker than expected (-1.3% M/M), with strong gains in May revised downward."

"Minor drift in the EUR through the upper 1.16s does not undermine the general lift in spot since the start of the month. If anything, losses from yesterday’s peak look to be a consolidation ahead of another push higher. Support is 1.1635. Regaining 1.1710+ should see spot push towards 1.1750."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD advances as US-Iran peace deal weighs on US Dollar

EUR/USD rises after registering minor losses in the previous day, trading around 1.1610 during the Asian hours on Monday. The pair appreciates as the US Dollar declines amid easing risk aversion following the reports that the United States and Iran agree on a peace deal to end the war and reopen the Strait of Hormuz.

GBP/USD rises as market sentiment improves on US-Iran peace deal

GBP/USD gains ground after registering minor losses in the previous day, trading around 1.3450 during the Asian hours on Monday. The pair rises as the US Dollar declines amid easing risk aversion following the reports that the United States and Iran have agreed on a peace deal to end the war and reopen the Strait of Hormuz.

Gold rises to weekly high as US, Iran reach peace deal

Gold price rises to a weekly high during the Asian trading hours on Monday. The precious metal rebounds after the United States and Iran had reached a deal to end their conflict, easing concerns about inflation and higher interest rates.

Experts agree: Bitcoin nears bottom, but weak demand raises doubts

Bitcoin is trading above $63,000 at the time of writing on Friday after rebounding from the key 200-week Simple Moving Average near $62,000, a level widely viewed as key long-term support. The recovery may suggest that Bitcoin has found a floor after a sharp correction that spanned more than a month, but some warning signs persist.

BoJ set to hike, but will it save the Yen?

The Bank of Japan is poised to hike interest rates for the fifth time in this tightening cycle on Tuesday, taking the policy rate from 0.75% to 1.00%. As has become customary for BoJ rate hikes lately, the hawkish rhetoric has been intensifying in the run up to the meeting, with Governor Ueda essentially locking in the move in his last appearance on June 3.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.