EUR/USD dips below 1.20 on Coeure's jawboning

Omkar Godbole FXStreet Contributor

EUR/USD came under a moderate selling pressure after ECB's Coeure said the monetary policy will remain accomodative for longer.

Coeure talked about subdued inflationary pressures and expressed concerns regarding the unwarranted tightening of the financial conditions caused by a strong Euro. Consequently, the EUR/USD pair dropped to a session low of 1.1993.

However, the selling pressure is not intense and appears to have stalled around 1.1995. Moreover, this looks like a half hearted attempt by Coeure to jawbone the EUR as the policy maker also said that the strong Euro may have less impact on growth.

Attentions today will likely remain on broader market sentiment as the domestic macroeconomic docket offers little to spark direction.

Options data discussed here, suggests the investors have hedged for a potential technical correction in EUR/USD.

EUR/USD Technical Levels

The immediate support is seen at 1.1969 [1-hour 100-MA] ahead of 1.1935 [1-hour 200-MA] and 1019 [zero figure]. On the other hand, a break above 1.2022 [1-hour 50-MA] would open doors for 1.2060 [Sep 7 high] and 1.2092 [previous day's high].

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.