• US S&P Global PMIs showed that the US economy is expanding at a slower pace.
  • Worst than expected, Eurozone PMIs, tripped the EUR/USD towards daily lows below 1.0500.
  • Fed’s Powell said he would be reluctant to cut rates when asked at the US House of Representatives.

The EUR/USD slides for the first day in the week, down by 0.30%, courtesy of a mixed market mood and dismal S&P Global PMIs figures on the Euro area reported in the European session, which tumbled the EUR/USD from daily highs around 1.0580s to daily lows near 1.0482. At 1.0509, the EUR/USD prints losses and is ready to continue its path towards the 1.0500 figure.

 A risk-off impulse and dismal EU reported PMIs, tumbled the euro

Sentiment is mixed in the markets. Worst than forecasted EU S&P Global PMIs, all the readings missed expectations, though it weighed more in France. The slowdown in Europe gathers pace even as the European Central Bank (ECB) prepares to lift rates in the July meeting, aiming to tame inflation under control.

The EUR/USD fell on the back of the abovementioned, alongside a risk-off impulse that caused a jump in the greenback. In the meantime, the US S&P Global PMIs also failed to achieve expectations, showing that the US economy is also slowing, but Fed speaking, put a lid on the EUR/USD’s recovery.

The US Federal Reserve Chair Jerome Powell, in his appearance at the House of Representatives, said that the Fed has an “unconditional commitment to fighting inflation” and added that bringing inflation without impacting the labor market would be challenging.

Furthermore, when Jerome Powell was asked about cutting rates, he said he is reluctant to do it while adding inflation expectations are anchored, but that’s not enough as, over time, they will come under pressure.

In the meantime, the Fed’s Governor Michell Bowman said that another 75 bps rate hikes would be needed, and she added that further rate hikes would be required. Bowman said that inflation is unacceptably high and has shown no signs of moderating.

Elsewhere, the US Dollar Index, a gauge of the buck’s value against its peers, pops up 0.25% sitting at 104.445, while US Treasury yields, fall, reflecting investors are reassessing not as aggressive as expected Fed tightening, as the US S&P Global PMIs crossed wires.

In the week ahead, the EU calendar will feature ECB speaking, with McCaul, Fernandez-Bollo, Vice-President de Guindos, and Germany’s Ifo indices for June. Across the pond, US New Home Sales and Michigan Consumer Sentiment for June on its final reading will shed some light regarding the US economy

EUR/USD Key Technical Levels

 

Overview
Today last price 1.0509
Today Daily Change -0.0057
Today Daily Change % -0.54
Today daily open 1.0567
 
Trends
Daily SMA20 1.0613
Daily SMA50 1.0615
Daily SMA100 1.0866
Daily SMA200 1.115
 
Levels
Previous Daily High 1.0606
Previous Daily Low 1.0469
Previous Weekly High 1.0601
Previous Weekly Low 1.0359
Previous Monthly High 1.0787
Previous Monthly Low 1.035
Daily Fibonacci 38.2% 1.0553
Daily Fibonacci 61.8% 1.0521
Daily Pivot Point S1 1.0489
Daily Pivot Point S2 1.041
Daily Pivot Point S3 1.0352
Daily Pivot Point R1 1.0626
Daily Pivot Point R2 1.0684
Daily Pivot Point R3 1.0762

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 

EUR/USD News

GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 

GBP/USD News

Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures