EUR/USD picks up a bid ahead of Eurozone PMIs and ECB minutes

EUR/USD faded the spike to 1.1371 yesterday as the Fed minutes were slightly more hawkish-than-expected.
The pair picked up a bid in Asia and could find takers in Europe if the Eurozone PMIs beat expectations, alleviating recession fears. ECB minutes will likely sound dovish, but the delay in the rate hike has been priced in.

Omkar Godbole FXStreet Contributor

EUR/USD is currently trading at 1.1350, representing a 0.14 percent gain on the day.

The common currency had jumped to a high of 1.1371 in the NY session yesterday. The move to two-week highs, however, was short-lived, as the Fed minutes carried a slightly hawkish tilt of several members still believing that the most likely path in rates was still higher if the economy evolves as expected.

As a result, EUR/USD erased gains and closed with marginal losses at 1.1336. The pair, however, picked up a bid in Asia, possibly tracking the rise in the offshore Chinese yuan to 7-month highs.

The bid tone around the common currency will likely strengthen further if the preliminary German and Eurozone PMI indices for February beat estimates, alleviating recession fears to some extent.

The minutes of the European Central Bank's (ECB) January meeting, also scheduled for release today, are likely to reiterate growth concerns. The EUR pairs, however, will likely reamain resilient as the central bank's dovish shift has been penciled in by markets - EUR/USD fell from 1.1514 to 1.1234 in two-weeks to Feb. 15.

Add to that, the bullish crossover between the 5- and 10-day moving averages (MAs) and the path of least resistance appears to be on the higher side.

Technical Levels

1. R3 1.1414
2. R2 1.1393
3. R1 1.1367
PP 1.1346
1. S1 1.1319
2. S2 1.1298
3. S3 1.1272

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD holds firm near 0.7000 after Chinese inflation, trade data

AUD/USD stays firm near 0.7000 in Wednesday’s Asian session, picking up some bids after China's mixed inflation and upbeat trade data. CPI rose less than expected in September, while PPI inflation picked up. Meanwhile, the Chinese trade surplus unexpectedly widened in September. The pair remains underpinned by a broadly subdued US Dollar, despite the Middle East escalation, as focus remains on US CPI data.

USD/JPY consolidates near 158.50; looks to US CPI for fresh impetus

USD/JPY stays range-bound near 158.50 in the Asian session on Wednesday, with looming intervention risks supporting the Japanese Yen and capping upside amid a softer US Dollar. However, geopolitical uncertainties act as a tailwind for the safe-haven USD and the pair. Traders also seem hesitant ahead of the release of the latest US inflation figures.

Gold remains offered below $4,100

Gold adds to the weekly bearish tone and slips back below the $4,100 mark per troy ounce on Wednesday. Indeed, the precious metal continues to suffer the stronger US Dollar and rising US Treasury yields as bets for extra tightening by the Fed remain on the rise following US inflation figures.

XRP recovery faces headwinds despite Ripple and Meritz Securities' tokenization push in Korea

XRP trades above $1.36 as bulls gather momentum to face a critical supply range toward $1.40. Ripple and Meritz Securities partner to explore institutional custody and tokenization services for South Korea’s capital markets.

China's rare earth leverage has an expiration date: November 10. Here's what Beijing is deciding

China is approaching a major strategic deadline in its trade confrontation with the United States (US). On November 10, the suspension of additional rare earth export restrictions Beijing announced in October 2025 is set to expire.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?