EUR/USD is once again attempting to find some support in the upper half of the 1.05-1.06 range. Economists at ING believe that the world’s most popular currency pair could move higher today, but the rally is set to stall around the 1.0650 zone.
Eyes on ZEW and ECB speakers
“Some resilience amid yesterday’s turbulent market conditions and a potential stabilisation in risk sentiment today could combine to fuel a break above 1.06 today. Still, the upside remains limited given some USD buying and lingering concern about the ban on Russian oil currently under discussion in the EU.”
“Markets will focus on ZEW figures out of Germany today. Both the “expectations” and “current situation” surveys are set to show another drop in May given high energy prices and the prolonged geopolitical risk. However, the impact on EUR/USD of the latest ZEW releases has been quite negligible.
“Markets now appear to cement their expectations around a July hike (which is also our base case) but remain torn around the size of rate increases in 2022. One of the most hawkish members of the Governing Council, Germany’s Joachim Nagel, will speak first this afternoon, followed by the more moderate François Villeroy and Luis De Guindos.”
“We see some modest upside risk for EUR/USD today, with any rally possibly stalling already around the 1.0650 level.”
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.
Follow us on Telegram
Stay updated of all the news
AUD/USD bulls stay in the game and eye higher before correction
AUD/USD advanced mid-week and extended the gains on Thursday´s New York session as the US Dollar tumbled. AUD was helped by better China factory data and due to the hopes that the Federal Reserve will pause the rate hike.
EUR/USD bulls need validation from 100-day EMA and US NFP
EUR/USD seesaws around 1.0760 during Friday’s sluggish Asian session, after rising the most in nearly two months the previous day. In doing so, the Euro pair portrays the pre-NFP consolidation amid a cautious mood and a light calendar, as well as mixed technical catalysts.
Gold eyes a sustained break above $1,980 amid chaos over Fed’s rate guidance
Gold price has sensed marginal selling pressure after failing to sustain above the crucial resistance of $1,980.00 in the Asian session. The precious metal showed a solid upside on Thursday, capitalizing efficiently on a sell-off in the US Dollar Index (DXY).
Token unlocks trouble the market despite the events’ role in project stability
Token unlocks help maneuver volatility in the market as the releases bring opportunities for increased liquidity and, therefore, potential gains. Nevertheless, akin to the laws of demand and supply, the events lead to a fall in crypto prices for some assets.
The June rate hike needle has been moved precipitously lower
Even though equity market investors had, for the most part, looked through the debt ceiling drama, US stocks still rallied in relief rally fashion as investors revelled after perhaps one of the most significant economic downside risks of the year had been skirted.