EUR/USD stuck in a range below mid-1.1500s, ECB awaited

Haresh Menghani FXStreet

The EUR/USD pair maintained it’s offered tone through early NA session but has still managed to hold its neck above the key 1.15 psychological mark despite upbeat US housing market data.

The pair oscillated within a 20-pips narrow trading range and had a muted reaction to today's US data, showing a sharp rebound in building permits and housing starts during the month of June. Investors seemed reluctant to place aggressive bets amid slightly overbought conditions and ahead of the next big event risk - ECB decision.

Moreover, a tepid recovery US Dollar recovery, following its recent sell-off to 10-month lows, further collaborated to the pair's minor pullback to 1.1530-35 region from fresh 14-month highs touched in the previous session.

Subdued reaction to the US economic data clearly suggests that traders preferred to remain on the sideline heading into the key ECB monetary policy announcement, scheduled during European session on Thursday.

• ECB: Not-so great expectations - Rabobank

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, "intraday technical readings favor the upside, as the price is developing above a bullish 20 SMA in the 4 hours chart, while technical indicators are currently resuming their advances within positive territory, after correcting the extreme overbought conditions reached on Tuesday. Little could be expected for the rest of the day, although a recovery above 1.1550, should lead to additional advances during the US session up to 1.1615."

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

British Pound eases to 1.3450 area following downwardly revised Manufacturing PMI data

The British Pound is trimming previous gains against the US Dollar on Monday, returning to the mid-range of the 1.3400s down from fresh seven-week highs, above 1.3500 earlier on the day. Weaker-than-expected UK manufacturing data added pressure on the Pound, which rallied at the Asian session opening, amid news of a halt to the hostilities in Iran.

EUR/USD challenges 1.1500 on Dollar’s recovery

EUR/USD now accelerates its downtrend and comes closer to the 1.1500 level on Monday. The pair’s correction follows the decent improvement in the US Dollar amid solid data US releases and easing concerns on the geopolitical front.

Gold: The $4,000 mark holds the downside for now

Gold adds to Friday’s pullback, although it remains well underpinned by the key $4,000 threshold per troy ounce on Monday. The US Dollar’s inconclusive price action seems enough to cap the yellow metal’s potential upside, although renewed hopes for a US-Iran peace deal and fading expectations of a Fed rate hike could limit the Greenback’s recovery.

Ethereum Price Forecast: BitMine extends share buyback spree, scoops over 10K ETH

Ethereum (ETH) treasury firm BitMine Immersion Technologies (BMNR) continued its share buyback spree last week after repurchasing 4.5 million shares of its common stock. This purchase brings the total stock buyback since July 1 to 16.1 million shares, part of a previously authorized $4 billion repurchase plan.

AI defies the disinflationary playbook: Why lower oil prices might not be enough to cool core inflation

The global economic landscape has been fixated on the Middle East since the US-Iran war started in late February, reacting to significant changes in crude Oil prices and assessing how they could influence inflation dynamics and growth outlook.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.