EUR/USD is changing hands near 1.22. According to FXStreet’s Analyst Yohay Elam, euro is set to rally after weathering two storms.

The next moves hinge on US consumer sentiment and also infrastructure talks

“The first downbeat development came from the European Central Bank, which decided to maintain an elevated pace of bond-buying. Moreover, reports coming out after the event suggested that only three out of 25 members supported some kind of a tapering down of the Pandemic Emergency Purchase Program (PEPP). The bank is set to print more euros for longer.” 

“The dollar failed to benefit from higher than expected inflation figures. The headline Consumer Price Index (CPI) hit the round 5% mark. Core CPI also exceeded estimates by 3.8%. However, US Treasury yields extended their falls instead of rising. Investors seem convinced that the Federal Reserve will refrain from any hint of tapering down its current pace of bond-buying, seeing inflation as transitory.” 

“After holding up near 1.22, can EUR/USD extend its gains? The economic calendar features the preliminary University of Michigan's Consumer Sentiment Index for June. A small increase is on the cards, and investors will also watch the inflation components. However, without a fresh surge, the dollar could suffer.”

“Another factor is infrastructure news. According to reports, a bipartisan group suggested a $1.2 trillion expenditure plan that could pave the path for providing the US economy another boost. Details are still lacking and so is a blessing from President Joe Biden, who is at the -7 meeting in London.” 

“On the virus front, Europe continues catching up with the US on vaccinations, yet is still behind. Nevertheless, it is another minor bullish development.” 



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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

GME stock positioned for another short squeeze

Get the full analysis and chart in our Insights. Upgrade to Premium today    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD looks to 1.2200 amid weaker US Treasury yields, risk-on mood

EUR/USD is advancing towards 1.2200 amid the US dollar’s weakness on softer Treasury yields. Dovish Fed expectations continue to persist despite hotter US inflation. The euro benefits from the ECB’s progressive economic outlook.


GBP/USD: Upside remains capped below 1.4200 on disappointing UK GDP

GBP/USD is trading below 1.4200, keeping its range intact after the UK GDP missed estimates with 2.3% in April. The cable shrugs off a softer US dollar amid a cautious sentiment ahead of the G7 meeting and fresh chatters over a delay in the UK reopening.


Gold looks to retest May highs at $1913

Gold price is looking to extend Thursday’s stellar performance on the final trading day of this week, as the bulls briefly recapture the $1900 mark. Weakness in US dollar and Treasury yields motivate gold bulls.

Gold News

Shiba Inu price gains in jeopardy as it tags crucial support level

Shiba Inu price shows little to no connection with the crypto markets as it failed to rally on June 8. Additionally, SHIB continued to descend while most altcoins were on a rally, following Bitcoin.

Read more

Hot Inflation is warming the seat for the June FOMC

Americans are seeing the fastest price increases since their seventh-graders were born as inflation builds into the US economy from the disruptions of the pandemic lockdowns. Core CPI at 3.8% is the steepest gain in 29 years.

Read more