EUR/USD clings to mild losses below 1.0770, investors await Eurozone inflation, US PMI data


  • EUR/USD trades softer around 1.0765 despite the softer US Dollar. 
  • Futures traders expect the US Fed to start easing in the June meeting. 
  • The German HICP figure rose 2.3% YoY in March, its lowest level since June 2021. 

The EUR/USD pair clings to mild losses near 1.0765 after bouncing off the multi-week lows near 1.0720 on Wednesday. The weaker US Dollar Index (DXY) below the 105.00 mark provided some support to the major pair. However, the softer German inflation data on Tuesday weighs on the Euro as it has triggered the speculation of rate cuts from the European Central Bank (ECB). Investors await the advanced Eurozone inflation data for March and the US ISM Services PMI for fresh impetus. 

The dovish comments from many Federal Reserve (Fed) officials weigh on the Greenback. Cleveland Fed President Loretta Mester said on Tuesday that she expects rate cuts this year, but ruled out the next policy meeting in May. Meanwhile, San Francisco Fed President Mary Daly, stated she thinks three rate cuts in 2024 seem "reasonable,"  but she needs more convincing evidence to confirm it. Futures traders anticipate the US Fed to start easing in the June meeting and to cut by three-quarters of a percentage point by the end of the year.  

German inflation eased slightly more than expected in March, the lowest in almost three years, the German statistics office Destatis reported on Tuesday. The preliminary German Harmonized Index of Consumer Prices (HICP) rose 0.6% MoM in March, slightly below the estimation of a 0.7% MoM rise. The year-on-year rate of HICP rose 2.3%, below the market consensus of 2.4%. The softer inflation indicated Germany is nearing the European Central Bank's (ECB) target of 2%, raising market hopes for an imminent interest rate cut. This, in turn, exerts some selling pressure on the Euro (EUR) and creates a headwind for the EUR/USD pair

EUR/USD

Overview
Today last price 1.0768
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 1.0769
 
Trends
Daily SMA20 1.0864
Daily SMA50 1.0831
Daily SMA100 1.0876
Daily SMA200 1.0834
 
Levels
Previous Daily High 1.0779
Previous Daily Low 1.0725
Previous Weekly High 1.0864
Previous Weekly Low 1.0768
Previous Monthly High 1.0981
Previous Monthly Low 1.0768
Daily Fibonacci 38.2% 1.0758
Daily Fibonacci 61.8% 1.0745
Daily Pivot Point S1 1.0736
Daily Pivot Point S2 1.0703
Daily Pivot Point S3 1.0682
Daily Pivot Point R1 1.0791
Daily Pivot Point R2 1.0812
Daily Pivot Point R3 1.0845

 

 

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