- EUR/USD continues to push higher in the American trading hours.
- US Dollar Index fell below 92.00 following an earlier rebound.
- Core CPI in US edged higher to 1.6% in March.
After spending the first half of the day in a relatively tight range below 1.1900, the EUR/USD pair gained traction during the American session and touched its highest level in three weeks at 1.1945. As of writing, the pair was up 0.25% on the day at 1.1940.
DXY slumps below 92.00
The USD's market valuation remains the primary driver of EUR/USD's movements. Earlier in the day, the more-than-1% increase witnessed in the 10-year US Treasury bond yield helped the greenback outperform its rivals and the US Dollar Index (DXY) advanced to a daily high of 92.32.
However, the monthly report published by the US Bureau of Labor Statistics showed that the Core Consumer Price Index (CPI) rose to 1.6% on a yearly basis in March and triggered a USD selloff. Currently, the DXY is down 0.17% on the day at 91.92 and remains on track to close the second straight day in the negative territory.
On the other hand, the Eurozone ZEW Economic Sentiment fell to 66.3 in April from 74 and missed the market expectation of 73.2. Similarly, the German ZEW Economic Sentiment Index declined to 70.7 from 76.6. Nevertheless, the negative impact of these disappointing data on the shared currency remained short-lived.
On Wednesday, Eurostat will release February Industrial Production data for the euro area. Later in the day, FOMC Chairman Jerome Powell and New York Fed President John Williams will be delivering speeches.
Technical levels to watch for
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.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.