EUR/USD moves to daily highs near 1.1990, EMU CPI eyed

The pair recovers ground lost and approaches 1.20.
The greenback appears offered following the FOMC meeting.
Advanced inflation figures in Euroland coming up next.

Pablo Piovano FXStreet

The now offered bias around the greenback is lifting EUR/USD to the area of session highs near 1.1990.

EUR/USD focused on CPI

After bottoming out in fresh cycle lows in the 1.1940/35 band on Wednesday, spot managed to pick up some buying interest and is now testing once again the proximity of the psychological handle at 1.2000 the figure, where also converges the key 200-day sma.

The pair is up for the first time after three consecutive daily pullbacks as market participants continue to adjust to yesterday’s FOMC meeting, where the Federal Reserve left the overnight rates unchanged at 1.50%-1.75%, matching the broad consensus.

It is worth recalling that the Committee now sees inflation close to the Fed’s 2% target and expects some ‘symmetry’ around it, allowing for some overshooting at the same time. The FOMC also noted that gains in jobs are strong and the risks to economic growth are ‘roughly balanced’. In addition, the Committee reiterated that the economy warrants further gradual rate hikes.

In the data space, advanced inflation figures in the euro area for the month of April will be the salient event during the European morning. Across the pond, Initial Claims, Trade Balance, Durable Goods Orders and the ISM Non-manufacturing are all due later in the NA session.

EUR/USD levels to watch

At the moment, the pair is up 0.30% at 1.1987 and a break above 1.2033 (high May 2) would target 1.2113 (10-day sma) en route to 1.2210 (high Apr.26). On the other hand, the immediate support lines up at 1.1938 (low May 2) seconded by 1.1916 (2018 low Jan.19) and finally 1.1718 (monthly low Dec.12 2017).

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 holds steady near 0.7200 amid escalating US-Iran tensions

AUD/USD consolidates just below its highest level since mid-May, touched on Friday, and hovers around 0.7200 at the start of a new week amid mixed cues. Hawkish RBA expectations continue to act as a tailwind for the Aussie. Meanwhile, the upbeat US NFP report lifted Fed rate hike bets, which, along with escalating US-Iran tensions, underpins the safe-haven US Dollar and caps the currency pair.

USD/JPY hovers around 156.00 as more hawkish BoJ bets cap gains

USD/JPY holds steady above 156.00 on Monday as the US Dollar draws support from escalating US-Iran tensions and rising Fed rate-hike bets, bolstered by Friday's upbeat NFP report. Moreover, concerns over Japan’s fiscal outlook keep the Japanese Yen on the back foot and support the currency pair, though more hawkish BoJ expectations and a suspected intervention cap the upside.

Gold sticks to losses as bears await acceptance below $4,400 amid Fed rate hike bets

Gold attracts some sellers for the second straight day, though it lacks follow-through, and hovers around the $4,400 mark heading into the European session. Moreover, the commodity holds above Friday's swing trough, touched in reaction to the upbeat US monthly employment details, warranting some caution for bearish traders before positioning for any further losses.

Cardano: Strengthening momentum points to cautious upside extension

Cardano trades around $0.222 after rallying over 15% last week. Mixed derivatives data and mildly bullish on-chain metrics point to cautious market sentiment. Meanwhile, strengthening momentum indicators suggest ADA could see further gains if the recovery continues. Cardano derivatives metrics show a mixed sentiment. CoinGlass’ long-to-short ratio for ADA reads 0.94 on Monday.

US Dollar Weekly Forecast: Why one inflation report could matter more than a blockbuster NFP?

Joy can’t last forever, can it? The US Dollar rapidly faded its prior gains and resumed its marked downside this week, with the US Dollar Index coming close to its psychological 100.00 barrier, only to see that dream turn to ashes as market chatter reignited speculation that the Bank of Japan might hike its policy rate at its next meeting.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.