EUR/USD looks volatile above 1.1800, Lagarde’s presser underway

EUR/USD climbs to 1.1840, or daily highs, post-ECB.
Lagarde sees the economy back to pre-pandemic levels by year-end.
Risks to the economy are still seen as broadly balanced.

Pablo Piovano FXStreet

Following a move to daily highs around 1.1840 soon after the ECB statement, EUR/USD now embarked on a correction to the 1.1810 region as Chairwoman Lagarde’s presser is underway.

EUR/USD stays supported near 1.1800

EUR/USD manages well to keep business above the key 1.1800 yardstick after ECB’s C.Lagarde said the rebound of the economic activity in the region is increasingly advanced, adding that the economy could return to pre-pandemic levels by year-end. The ECB expects the economy to expand 5.0% this year, 4.6% in 2022 and 2.1% in the following period. Risks to the growth outlook, in the meantime, comes from the perseverance of the pandemic and/or supply shortages.

Lagarde highlighted the fast improvement in the labour market as well as the cautious stance among consumers, while production remains affected by shortages.

Regarding inflation, Lagarde noted that current higher prices remain temporary and that the medium-term inflation is still seen well below the target. The central bank revised higher its inflation projections and now see the CPI at 2.2% in 2021, 1.7% in 2022 and 1.5% in 2023.

At her press conference, Lagarde said the Governing Council unanimously decided on the pace of purchases under the PEPP, although she gave no hints at the moment when the stimulus programme could end.

EUR/USD levels to watch

So far, spot is gaining 0.01% at 1.1813 and faces the next up barrier at 1.1909 (monthly high Sep.3) followed by 1.1943 (100-day SMA) and finally 1.2000 (psychological level). On the other hand, a break below 1.1802 (weekly low Sep.8) would target 1.1786 (20-day SMA) en route to 1.1663 (2021 low Aug.20).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD eyes 0.7150 barrier nine-day EMA

AUD/USD inches higher after registering modest losses in the previous day, trading around 0.7130 during the Asian hours. The technical analysis of the daily chart indicates that the pair is moving sideways within the rectangle pattern, suggesting a consolidation as neither the bulls nor the bears have enough momentum to take control of the market.

USD/JPY trades below 160.00 intervention threshold; bullish bias intact

The USD/JPY pair attracts some sellers during the Asian session amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, the Israel-Lebanon truce prompts some profit-taking around the US Dollar and exerts downward pressure on the currency pair.

Gold defends 200-day SMA at $4,425, but for how long?

Gold is attempting a tepid recovery toward $4,500 early Thursday, as renewed optimism in the Mideast geopolitical front calms market nerves. This cautious optimism across Asian markets weighs on Oil prices, and diminishes the US Dollar’s safe-haven appeal, helping Gold stage a decent comeback from the weekly low of $4,424.

Hyperliquid: ETF demand, capital rotation fuel HYPE rally as Bitcoin melts

Hyperliquid price sustains an upward trend near its all-time high of $75.76 on Thursday after posting 80% gains in May, while Bitcoin (BTC) retraces below $65,000, triggering a market-wide panic.

Kevin Warsh takes the Fed helm: What it means for the US Dollar

The Federal Reserve moves away from the highly predictable "forward guidance" model of the Jerome Powell era to a new “Kevin Warsh environment”, characterized by less communication, more policy surprises, and an increased focus on the Fed's complex balance sheet.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.