- EUR/USD justifies the previous day’s bearish candlestick to refresh intraday low, prints the biggest intraday loss in four day.
- A less hawkish ECB talks join consolidation ahead of the key inflation numbers to tease Euro bears.
- Fed officials also appear unclear about their next moves even as banking fears recede.
- ECB’s Economic Bulletin, preliminary readings of Germany’s HICP for March eyed for fresh impulse.
EUR/USD bears are in the driver’s seat after a four-day off as the major currency pair drops to 1.0830 while extending the previous day’s U-turn from the weekly high amid early Thursday. In doing so, the Euro pair portrays the market’s consolidation ahead of the key German inflation data and the European Central Bank’s (ECB) monthly Economic Bulletin. Additionally, the market’s cautious mood and the US Dollar’s sustained recovery also weigh on the quote of late.
That said, the pair refreshed the weekly top on Wednesday after ECB policymaker Peter Kazimir and Chief Economist Philip Lane advocated for further rate hikes. However, ECB Policymaker Isabel Schnabel said that underlying inflation in the Eurozone is proving sticky and hence raised doubts about the regional central bank’s future hawkish bias.
On the other hand, Fed Chair Jerome Powell’s teasing of one more rate hike joined Fed Vice Chair for Supervision Michael Barr’s emphasis on data dependency to allow the US Dollar to remain firmer. On the same line could be Fed Chair Powell’s push for alteration in deposit insurance.
It should be noted that Germany’s GfK Consumer Confidence figures for March improved to -29.5 from -30.6 revised prior, not to forget mentioning -29.2 market forecasts. The US Pending Home Sales for February, however, grew 0.8% MoM versus -3.0% expected and 8.1% prior.
On a broader scale, the optimism surrounding the technology and banking sector puts a floor under the EUR/USD prices even as nuclear threats from Russia and North Korea join the US-China tussles to weigh on the risk profile and the pair prices of late.
While portraying the mood, the S&P 500 Futures struggle around a one-week high marked the previous day, while ignoring Wall Street’s upbeat performance, whereas the US 10-year and two-year Treasury bond yields grind higher after teasing the bond buyers the previous day.
Looking ahead, the ECB’s Economic Bulletin and Germany’s preliminary readings of the Harmonized Index of Consumer Prices (HICP) gauge for March will be crucial for the EUR/USD pair traders to watch considering the latest reduction in the inflation woes and the USD rebound.
Technical analysis
Wednesday’s Doji candlestick on the EUR/USD pair’s daily chart gains more attention from the sellers as it stands at the weekly top.
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