EUR/USD rebounds to 1.0850 as market sentiment improves, US Inflation in focus


  • EUR/USD recovers to 1.0850 as market sentiment turns cheerful.
  • The ECB is expected to keep its Main Refinancing Operations Rate unchanged at 4.5% on Thursday.
  • The next move in the US Dollar will be guided by the US Inflation data for March.

The EUR/USD pair bounces back to 1.0850 in Monday’s early American session as appeal for risky assets improve. Market sentiment is positive even though traders pare bets supporting Federal Reserve (Fed) rate cuts, which were leaned for the June meeting. The S&P 500 futures open on a slightly positive note. 10-year US Treasury yields rose to four-month high near 4.43% as Fed rate cut expectations have shifted for the second half of this year.

Meanwhile, the US Dollar turns subdued despite robust US Nonfarm Payrolls (NFP) data for March dent rate cut hopes. The US Dollar Index (DXY), which tracks the US Dollar’s value against six major currencies, falls slightly to 104.30.

Going forward, investors will focus on the US Consumer Price Index (CPI) for March, which will be published on Wednesday. Annual headline inflation is forecasted to have accelerated to 3.4% from 3.2% in February. In the same period, the core CPI that strips off volatile food and Oil prices is estimated to have dipped slightly to 3.7% from 3.8%.

Strong price pressures could keep hopes of rate cuts for June off the table, while soft figures could prompt speculation for the Fed pivoting to rate cuts in the same period.

On the Eurozone front, investors shift focus to the European Central Bank’s (ECB) interest rate decision, which will be announced on Thursday. The ECB is widely anticipated to keep its key borrowing rates steady at 4.5%. While investors will focus on more cues about when the ECB will pivot to rate cuts.

EUR/USD

Overview
Today last price 1.0848
Today Daily Change 0.0010
Today Daily Change % 0.09
Today daily open 1.0838
 
Trends
Daily SMA20 1.085
Daily SMA50 1.0829
Daily SMA100 1.0875
Daily SMA200 1.0833
 
Levels
Previous Daily High 1.0848
Previous Daily Low 1.0791
Previous Weekly High 1.0876
Previous Weekly Low 1.0725
Previous Monthly High 1.0981
Previous Monthly Low 1.0768
Daily Fibonacci 38.2% 1.0826
Daily Fibonacci 61.8% 1.0813
Daily Pivot Point S1 1.0803
Daily Pivot Point S2 1.0769
Daily Pivot Point S3 1.0747
Daily Pivot Point R1 1.086
Daily Pivot Point R2 1.0882
Daily Pivot Point R3 1.0917

 

 

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