• EUR/USD stumbled and headed to the 1.0830s area after printing a weekly high at 1.0929.
  • US jobs data suggests that the US Federal Reserve is not done raising rates.
  • European Central Bank policymakers continue to emphasize that more hikes are coming.

EUR/USD hit a seven-week high but reversed its course, dropping below 1.0900 as the US Dollar (USD) pared some of its earlier losses. On Wednesday, the US Federal Reserve (Fed) raised rates by 25 bps, though market participants perceived it as dovish. That underpinned the EUR/USD, but traders booking profits weakened the Euro (EUR). The EUR/USD is trading at 1.0829, down 0.17%.

Yellen’s soft tone improved sentiment and lifted the US Dollar

Wall Street finished positively. The US Secretary of Treasure Janet Yellen testified before the house and backpedaled on Wednesday’s remarks that the US government is not planning to introduce blanket insurance to all depositors. Yellen said, “The strong actions we have taken ensure that Americans’ deposits are safe. Certainly, we would be prepared to take additional actions if warranted.”

Data-wise, the US Department of Labor revealed that the labor market remains tight, unveiling the Initial Jobless Claims for the last week. Claims rose by 191K, less than the 201K estimates by the market. The Chicago Fed National Activity Index for February plunged to -0.19 vs. the prior’s month 0.23.

Meanwhile, European Central Bank (ECB) officials crossed the wires and remained hawkish. ECB Muller said that the ECB should likely raise rates a little. Echoing some of his comments was Klas Know, adding that the ECB is unlikely to stop raising interest rates.

Sources linked to the ECB commented that policymakers are confident that the Eurozone (EU) banking system stood tall in the recent turbulence. Therefore that would allow the ECB to resume additional interest rate increases.

EUR/USD Daily chart

EUR/USD Daily chart

EUR/USD Technical levels

EUR/USD

Overview
Today last price 1.0831
Today Daily Change -0.0025
Today Daily Change % -0.23
Today daily open 1.0856
 
Trends
Daily SMA20 1.0644
Daily SMA50 1.0731
Daily SMA100 1.0597
Daily SMA200 1.0331
 
Levels
Previous Daily High 1.0912
Previous Daily Low 1.0759
Previous Weekly High 1.076
Previous Weekly Low 1.0516
Previous Monthly High 1.1033
Previous Monthly Low 1.0533
Daily Fibonacci 38.2% 1.0854
Daily Fibonacci 61.8% 1.0818
Daily Pivot Point S1 1.0772
Daily Pivot Point S2 1.0689
Daily Pivot Point S3 1.0619
Daily Pivot Point R1 1.0926
Daily Pivot Point R2 1.0996
Daily Pivot Point R3 1.1079

 

 

 
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