EUR/USD looks to regain 1.0600 as US Dollar bulls take a breather, German Inflation, US PMI eyed


  • EUR/USD begins March month on a positive footing after the biggest monthly fall since September 2022.
  • Cautious optimism in the market allows US Dollar to wobble near multi-day higher.
  • Strong inflation data from Spain, France contrasts with downbeat US statistics to also underpin recovery moves.
  • Germany’s HICP, US PMIs will be crucial for intraday directions.

EUR/USD picks up bids to refresh intraday high near 1.0595 heading into Wednesday’s European session. That said, the major currency pair marked the biggest monthly loss since the last September before marking the latest corrective bounce.

In doing so, the Euro pair takes clues from the broad US Dollar pullback amid a month-start sluggish session and pre-data anxiety. It’s worth noting that the upbeat prints of inflation numbers from Spain and France join China-inspired favor to the risk-on mood to also underpin the EUR/USD rebound.

That said, the preliminary readings of Spanish and French Consumer Price Index (CPI) details for February marked upbeat outcomes and bolstered the hawkish concerns surrounding the European Central Bank’s (ECB) next move on Tuesday.

On the contrary, the US Conference Board’s (CB) Consumer Confidence dropped for the second consecutive month to 102.9 versus 106.0 prior (revised) while US Housing Price Index drops 0.1% in December versus -0.6% market forecasts and -0.1% prior. Furthermore, Chicago Purchasing Managers’ Index for February eased to 43.6 from 44.3 previous readings and 45.0 market consensus whereas the Richmond Fed Manufacturing Index for the said month eased below 11.0 prior and -5.0 expected to -16.

It should be noted that strong prints of China’s Caixin and NBS Manufacturing PMIs for February joins the Non-Manufacturing PMI for the said month to mark an upbeat economic rebound in the world’s biggest industrial player and favored the risk profile. Even so, China Finance Minister Liu He said after the data release that the foundation of China's economic recovery is still not stable.

Against this backdrop, S&P 500 Futures turn positive after initially tracking Wall Street’s mild losses.

However, the firmer US Treasury bond yields and hawkish Fed bets, as well as the global inflation woes, keep the US Dollar on the bull’s radar. That said, the US Dollar Index (DXY) clings to mild losses near 104.85 after February’s impressive north-run.

Looking ahead, the first readings of Germany’s key inflation gauge for February, namely the Harmonized Index of Consumer Prices (HICP), could challenge the pair’s upside momentum on missing the upbeat 0.7% MoM forecasts, versus 0.5% prior. Also important to watch are the S&P Global and ISM PMI details for February.

Technical analysis

The EUR/USD pair’s multiple failures to cross the 50-bar Exponential Moving Average (EMA), around 1.0620, join the receding bullish bias of the MACD signals to favor sellers. On the flip side, a two-month-old ascending support line, near 1.0545, could restrict the short-term downside of the pair.

Additional important levels

Overview
Today last price 1.0595
Today Daily Change 0.0018
Today Daily Change % 0.17%
Today daily open 1.0577
 
Trends
Daily SMA20 1.0703
Daily SMA50 1.0725
Daily SMA100 1.0469
Daily SMA200 1.033
 
Levels
Previous Daily High 1.0646
Previous Daily Low 1.0577
Previous Weekly High 1.0705
Previous Weekly Low 1.0536
Previous Monthly High 1.1033
Previous Monthly Low 1.0533
Daily Fibonacci 38.2% 1.0603
Daily Fibonacci 61.8% 1.0619
Daily Pivot Point S1 1.0554
Daily Pivot Point S2 1.0531
Daily Pivot Point S3 1.0485
Daily Pivot Point R1 1.0623
Daily Pivot Point R2 1.0668
Daily Pivot Point R3 1.0691

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

AUD/USD begins Thursday’s session flat ahead of RBA Hunter speech

AUD/USD begins Thursday’s session flat ahead of RBA Hunter speech

The Aussie Dollar tumbled more than 0.50% on Wednesday versus the Greenback amid elevated US Treasury yields, as another bond auction witnessed softer demand. The AUD/USD trades near 0.6608, almost flat as Thursday’s Asian session commences.

AUD/USD News

EUR/USD tumbles back to 1.08 region, investors turn to US GDP and PCE inflation

EUR/USD tumbles back to 1.08 region, investors turn to US GDP and PCE inflation

EUR/USD pulled back sharply on Wednesday, falling back to the 1.0800 handle after broad risk appetite evaporated. The pair is trading firmly into technical resistance as investors gear up for a batch of mid-tier European economic indicators on Thursday, followed by an update to US quarterly GDP growth.

EUR/USD News

Gold slumps amid strong US Dollar, high US Treasury yields

Gold slumps amid strong US Dollar, high US Treasury yields

Gold prices slump on Wednesday amid rising US Treasury yields, boosting demand for the Greenback due to hawkish comments by a Federal Reserve official. Consequently, sentiment shifted sour, the US Dollar climbed, and the XAU/USD is trading at $2,339.

Gold News

Ethereum sideways move persists, analyst says ETH ETF will only see 20% of Bitcoin flows

Ethereum sideways move persists, analyst says ETH ETF will only see 20% of Bitcoin flows

Ethereum sustained its sideways movement on Wednesday as Bloomberg analyst Eric Balchunas compared spot ETH ETFs to Silver ETFs, predicting that they will only see 20% of the flows recorded across Bitcoin ETFs.

Read more

Dow Jones Industrial Average sheds 400 points on Wednesday as risk aversion weighs

Dow Jones Industrial Average sheds 400 points on Wednesday as risk aversion weighs

The Dow Jones Industrial Average is broadly lower on Wednesday, shedding over 400 points and backsliding below 38,500.00. The major equity index is down nearly nine-tenths of a percent as investor sentiment sours.

Read more

Forex MAJORS

Cryptocurrencies

Signatures