- EUR/USD has stuck around 1.1000 as investors await fresh impetus from EU leaders summit.
- EU members are mixed on the embargo of Russian oil, Germany reiterates to stick with Russian oil.
- A preliminary estimate for the US and Euro PMI is 56.3 and 56 respectively.
The EUR/USD pair is juggling around 1.1000 in the absence of any potential trigger that could dictate the further direction for the asset. Investors are waiting for the European Union (EU) leaders summit, which will also be joined by US President Joe Biden on Thursday.
The central attention of the meeting is likely to be attributed to an embargo on Russian oil. Following Russia’s invasion of Ukraine, the EU has concluded that Russia’s arbitrariness should be answered with an aggressive stick approach. Instead of that, the EU leaders are likely to discuss an embargo on Russian oil despite a higher dependency on oil imports from Moscow.
It is worth noting that Europe banks heavily on Russia to address its 30% demand for energy and 25% demand for oil. And, gauging a substitute on very short notice may escalate the threat of supply worries and eventually to slippage in manufacturing activities. However, EU members are mixed on banning Russian oil as Germany has stated that it is notwithstanding the decision of banning the Russian oil imports in the current scenario considering the boiling oil prices and supply chain bottlenecks.
Meanwhile, the US dollar index (DXY) has been struck around 98.60 and is indicating a volatility contraction going forward.
Apart from the EU leaders summit, investors will focus on Manufacturing PMI prints from the US and eurozone. The US Manufacturing PMI is likely to land at 56.3, lower than the previous figure of 57.3 while the eurozone PMI may reveal a figure of 56, lower than the prior print of 58.2.
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.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.