EUR/USD has the 1.1040 mark in its crosshairs

FXStreet Insights Team FXStreet

EUR/USD is trading near 1.10 and it looks to extend its rebound in case risk flows continue to dominate the financial markets. The next bullish target for the pair is located at 1.1040 ahead of 1.1080, FXStreet’s Eren Sengezer reports.

Euro could lose interest if it fails to hold above 1.10

“In case investors continue to price in a possible peace agreement between Russia and Ukraine, EUR/USD should preserve its recovery momentum. On the other hand, the pair could find it difficult to keep its footing if geopolitical tensions re-escalate.”

“In case the pair manages to hold above 1.1000 (psychological level, Fibonacci 38.2% retracement of the latest downtrend), it could target 1.1040 (Fibonacci 50% retracement) and 1.1080 (100-period SMA, Fibonacci 61.8% retracement).”

“On the downside, 1.0960 (50-period SMA) aligns as interim support ahead of 1.0930 (Fibonacci 23.6% retracement) and 1.0900 (psychological level, static level).”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD gains traction near 0.7100 as the post-Fed USD rally pauses

AUD/USD finds fresh buyers and retakes 0.7100 in the Asian session on Thursday as the US Dollar pauses its hawkish Fed-inspired rally to its highest level since late July. However, RBA rate-hike bets and hopes for US-Iran diplomatic efforts lift risk sentiment and support the risk-sensitive Australian Dollar and the major.

USD/JPY reverses a dip below 156.00 as focus shifts to BoJ

USD/JPY is reversing a brief dip below 156.00 in the Asian session on Thursday, looking to snap a three-day winning streak to a nearly two-week top set the previous day. The US Dollar pauses following the post-Fed rally to seven-week highs, while a more hawkish repricing of the BoJ's policy normalization path supports the Japanese Yen. This keeps the pair's upside limited, with the focus now shifting to the BoJ policy decision due on Friday.

Gold pops to weekly highs near $4,400

Gold climbs sharply and clinches fresh weekly peaks around the $4,480 zone per troy ounce on Thursday. The precious metal’s bounce leaves behind three daily declines in a row and follows the marked retracement in the US Dollar as well as another negative performance of crude oil prices.

BoE recap: A cautious stance amid rising inflation risks

The Bank of England left Bank Rate unchanged at 3.75% but delivered a distinctly hawkish message as its inflation outlook deteriorated sharply.

One hike down, more to come? The Fed’s new rate path says yes

The Federal Reserve (Fed) raised its Fed Fund Target Range (FFTR) range by 25 basis points to 3.75%-4.00% in a unanimous decision, saying the move would support a timelier return to its 2% inflation goal.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.