- The pair is off session tops on Thursday, hovering over 1.2350.
- USD looks to stabilize after yesterday’s post-FOMC sell-off.
- German IFO, Advanced PMIs in Euroland next on tap.
EUR/USD is extending the weekly advance above 1.2300 the figure on Thursday, although the upside appears so far limited in the 1.2370 region.
EUR/USD bid on FOMC, looks to data
Spot gathered further steam following the FOMC meeting on Wednesday, where the Federal Reserve raised the overnight funds rate to a range of 1.50%-1.75%, broadly in line with market expectations.
However, the Committee kept the view of three rate hikes this year, while revised up its projections for 2019 and 2020 to 2.9% and 3.4%, respectively. Furthermore, rate-setting members updated their outlook on the economy and now see it expanding 2.7% this year (from 2.5% previous).
Inflation (or the lack of it) remains a critical issue, as the Committee left the outlook on the Core-PCE unchanged at 1.9% for the current year and revised higher the Core-PCE to 2.1% for the next year (from 2.0%).
In the meantime, spot is consolidating in the upper end of the weekly range above the 1.2300 handle, fully reverting Tuesday’s sharp drop and at the same time flirting with multi-day peaks, always on the back of renewed and strong presence of sellers around the buck.
Later in the session, advanced PMIs in the euro bloc will be in the limelight along with the release of the German IFO for the month of March. Across the pond, Initial Claims are due seconded by Markit’s preliminary Manufacturing/Services PMI.
EUR/USD levels to watch
At the moment, the pair is gaining 0.12% at 1.2353 and a breakout of 1.2414 (high Mar.14) would target 1.2448 (high Mar.8) en route to 1.2557 (2018 high Feb.16). On the flip side, immediate contention emerges at 1.2241 (low Mar.21) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).
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
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.