The EUR/USD pair jumped to a session high of 1.0624 this Thursday morning on the back of a drop in the treasury yields.
The 10-year treasury yield dropped two basis points to 2.48% after having failed to extend gains above 2.5% in the North American session.
Moreover, Yellen’s disappointing comments on the economy and the sharp downward revision of the US Q1 GDP by the Atlanta Fed overshadowed the rise in the core inflation and core retail sales and triggered a wave of selling in the US dollar. EUR/USD staged a solid recovery from the low of 1.0521 to end the day higher at 1.0598.
ECB minutes due for release later today could offer insights into central bank’s view of the rising inflation across the Eurozone. Later in the day, weekly US initial jobless claims number and monthly housing starts and building permits could influence the dollar side of the story.
Increase in demand for the 30-year Treasury Inflation Protected Securities (TIPS) at the auction later today could strengthen the bid tone around the US dollar.
EUR/USD Technical Levels
The pair was last seen trading around 1.0615. A break above 1.0633 (Feb 14 high) would open doors for 1.0658 (Jan 26 low) and 1.0706 (38.2% of Trump sell-off). On the downside, breach of support at 1.0589 (session low) could yield a revisit to 1.0567 (23.6% fib), under which a major support is seen at 1.0521 (previous day’s low).
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.
Latest Forex News
Editors’ Picks
EUR/USD bulls keep the pace up, eye 1.1300
The greenback in sliding in Asia and the euro has extended gains on a strong hourly impulse that started in the early hours of the Nother American session on Tuesday. Concerns over the severity of the omicron virus strain continued to fade which supported riskier asset classes.
GBP/USD is heading higher in Asia as the US dollar slides to fresh lows
GBP/USD is printing back in the green at 1.32537 after climbing from a low of 1.3231 to a high of 1.3254 in Asia so far. The US dollar is sliding and trades down some 0.11% as measured against six major rival currencies in the DXY index.
EUR/USD bulls keep the pace up, eye 1.1300
The greenback in sliding in Asia and the euro has extended gains on a strong hourly impulse that started in the early hours of the Nother American session on Tuesday. Concerns over the severity of the omicron virus strain continued to fade which supported riskier asset classes.
Ethereum killer Solana price eyes 25% gains as SOL slows down its retracement
Solana price performance has been falling short of late, especially after the December 4 flash crash. But things could be due for a change as SOL presents a buy opportunity that might get more attractive if trapped bears decide to join the party.
Cyber Monday 2021 Discounts!
Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you?