- 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
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.