EUR/USD consolidates below 1.1800 amid steady USD, ahead of Lagarde’s speech
- EUR/USD sticks around multi-month support on Thursday, ECB Chief speech is due today.
- US dollar gains despite Fed’s minute suggest dovish outlook on rate hikes in the near term.
- The Euro remains under pressure as risk sentiment dampens amid rising corona cases due to the Delta variant.
EUR/USD extended the previous two day’s declines on Thursday morning Asian’s session. The pair took shelter near the multi-month low around 1.1795.
At the time of writing, EUR/USD is trading at 1.1790, up 0.01% for the day.
The US Dollar Index (DXY), which tracks the greenback performance against six major rivals, held steady at a 13-week high, despite the Fed’s softer stance on the rate hikes and concern over the economic recovery uncertainty.
Investors stay invested in the US dollar on the concerns of rising corona cases globally owing to the highly transmissible Delta variant, which threatens the economic recovery worldwide.
On the other hand, the shared currency remains muted ahead of the ECB’s President Christine Lagarde's would reveal the central bank’s tweaked inflation target at 2%, reversing from the existing “below” but near to 2%.
The ECB revised upwards its Eurozone gross domestic product (GDP) forecast for 2021 and 2022 on the account of improved health situation and better economic activity in Q1. The Eurozone is expected to expand at 4.8% in 2021, and 4.5% in 2022 as compared to May’s estimate of 4.3% and 4.4% respectively. The single currency remained unfazed by the upward projections.
EUR/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
