EUR/USD remains depressed below 1.1950 on firmer USD, German data eyed


  • EUR/USD struggles to hold onto the gains in the Asian session.
  • The Euro gains some ground on upbeat economic data.
  • Uptick in US treasury yields underpins the demand in the US dollar.

The buying interest in the US dollar keeps EUR/USD edgy on Thursday morning Asian’s session. After testing the high of 1.2263 in late May, the Euro lost the battle against the greenback. It breached the coveted 1.1900 mark and tested the lows of 1.8477 in the week.

At the time of writing, EUR/USD is trading at 1.1924, down 0.01% for the day.

The US 10 year benchmark yields trade at 1.49% with gains of 0.34%. The US Dollar Index (DXY) follows the treasury yields and stands strong at 91.82. Mixed comments from Fed’s official on inflation and interest rates outlook affects the greenback movement.

Atlanta Fed President Raphael Bostic said he expected interest rates to rise in late 2022 with surging economic growth at 7% and inflation above the Fed’s 2% target this year. Both Bostic and Fed Governor Michelle Bowman believed recent price pressure may take longer than anticipated for them to fade.

Meantime, US Treasury Secretary Janet Yellen on Wednesday warned Congress about the risk of debt default and a probable new financial crisis. The comments weigh on the sentiment of the US dollar.

In addition to that,  the US senators had reached a deal on the infrastructure spending bill and planned to discuss it with President Joe Biden today.

On the other hand, the shared currency gains were limited due to the attractive valuation of the USD. The upbeat domestic economic data holds the lower ground for the Euro.

The IHS Markit Eurozone Service PMI rose to 58.0 in June, well above the market forecast at 57.8. The Consumer Confidence Indicator gained 1.8 points, slightly higher than the market consensus at -3.0.

As for now, investors are glued to the release of a host of data in the US. Durable Goods Orders, Gross Domestic Product (GDP), and Initial Jobless Claim data. In the Eurozone, German IFO Business Climate data eyed to gauge the market sentiment

EUR/USD additional levels

EUR/USD

Overview
Today last price 1.1924
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 1.1926
 
Trends
Daily SMA20 1.2099
Daily SMA50 1.2098
Daily SMA100 1.2031
Daily SMA200 1.1997
 
Levels
Previous Daily High 1.197
Previous Daily Low 1.1912
Previous Weekly High 1.2147
Previous Weekly Low 1.1847
Previous Monthly High 1.2266
Previous Monthly Low 1.1986
Daily Fibonacci 38.2% 1.1934
Daily Fibonacci 61.8% 1.1948
Daily Pivot Point S1 1.1902
Daily Pivot Point S2 1.1877
Daily Pivot Point S3 1.1843
Daily Pivot Point R1 1.196
Daily Pivot Point R2 1.1994
Daily Pivot Point R3 1.2019

 


 

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