EUR/USD hovers near 1.0900 with an improved risk appetite

EUR/USD received support after the lower CPI and Retail Sales data released on Wednesday.
US Dollar depreciated due to lower US Treasury yields.
The Euro appreciates on increasing expectations for a convergence in monetary policy between the Eurozone and the US.

Akhtar Faruqui FXStreet

EUR/USD treads water to continue its winning streak for the fourth session, trading around 1.0880 during the Asian hours on Thursday. The US Dollar’s (USD) decline is contributing to pressure on the EUR/USD pair, which could be attributed to the improved risk appetite.

On Wednesday, the lower-than-expected monthly Consumer Price Index (CPI) and Retail Sales data in the United States (US) supported the probability of multiple rate cuts by the Federal Reserve (Fed) in 2024. US CPI decelerated to 0.3% month-over-month in April and came in at a lower-than-expected 0.4% reading. While Retail Sales flattened, falling short of the expected increase of 0.4%.

The US Dollar Index (DXY), which gauges the performance of the US Dollar (USD) against six major currencies, hovers around 104.20. The decline in the US Treasury yields is weakening the Greenback. The 2-year and 10-year yields on US Treasury bonds stand at 4.71% and 4.32, respectively, by the press time.

On the Euro side, on Wednesday, the seasonally adjusted Gross Domestic Product (GDP) for the Eurozone expanded by 0.3% quarter-on-quarter in the first quarter, meeting expectations. This growth signals a recovery from the 0.1% contraction experienced in each of the previous two quarters. Additionally, the annual growth rate matched expectations at 0.4%.

The Euro receives support from increasing expectations for a convergence in monetary policy between the Eurozone and the United States (US). The European Central Bank (ECB) is anticipated to lower rates during its upcoming meeting in June. While, market expectations are rising for the Fed to commence interest rate cuts from September, particularly after core inflation slowed in April for the first time in six months.

EUR/USD

Overview
Today last price	1.088
Today Daily Change	-0.0004
Today Daily Change %	-0.04
Today daily open	1.0884

Trends
Daily SMA20	1.0734
Daily SMA50	1.0786
Daily SMA100	1.0823
Daily SMA200	1.079

Levels
Previous Daily High	1.0886
Previous Daily Low	1.0813
Previous Weekly High	1.0791
Previous Weekly Low	1.0724
Previous Monthly High	1.0885
Previous Monthly Low	1.0601
Daily Fibonacci 38.2%	1.0858
Daily Fibonacci 61.8%	1.0841
Daily Pivot Point S1	1.0836
Daily Pivot Point S2	1.0788
Daily Pivot Point S3	1.0764
Daily Pivot Point R1	1.0909
Daily Pivot Point R2	1.0934
Daily Pivot Point R3	1.0982

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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