EUR/USD: Demand for the greenack prevails

FXStreet Team FXStreet

The ECB announced an emergency €750 billion aid package but was not enough. EU and US data came in worse than anticipated, Valeria Bednarik from FXStreet reports.

Key quotes

“The ECB announced late Wednesday an emergency €750 billion ‘pandemic emergency purchase program’ (PEPP) to buy private and public sector securities. Demand for the greenback, however, prevailed.”

“Germany released an unexpected preliminary estimate of the March IFO Business Climate, which fell to 87.7 from 96.”

“The US published Initial Jobless Claims for the week ended March 13, which jumped to 281K much worse than the 220K expected.”

“The Philadelphia Fed Manufacturing Survey was also a big miss, down to -12.7 from 36.7 previously.”

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FXStreet Team

FXStreet

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.