EUR/USD turns negative near 1.1760, Draghi eyed

Dhwani Mehta FXStreet

Having peaked near 1.1780 levels in the Asian trades, the EUR/USD pair gradually extended lower, now flirting with daily lows struck at 1.1759 last minutes.

EUR/USD trades below 20-DMA at 1.1779

The latest leg down in the spot is mainly driven by resurgent USD demand against its main competitors, tracking the renewed strength seen in Treasury yields across the time horizon, as upbeat US fundamentals continue to back the case for a Dec Fed rate rise. Meanwhile, Trump’s commitment on the tax overhaul plan also adds to the buoyant tone seen around the buck.

Trump: Want tax reform "by Christmas"

From the short-term perspective, any upside in the EUR/USD pair is likely to be short-lived until the Catalan crisis gets resolved, provided Catalonia’s President Puigdemont clarifies whether he wants to declare independence or not until the deadline ending tomorrow.

Moreover, downbeat German ZEW surveys and unimpressive Eurozone final CPI figures also add to the weight on the Euro. German Oct ZEW economic sentiment improves slightly, but misses estimates

Markets now look forward to the ECB speaks due today, with President Draghi expected to speak on regulatory reforms, while speeches from ECB’s Praet and Coeure will also be closely heard ahead of the Fedspeaks and US housing data due later on Wednesday.

EUR/USD Technical View

Haresh Menghani, Analyst at FXStreet notes: “With short-term technical indicators holding in negative territory, the pair remains poised to head towards testing the 1.1700 mark. Weakness below the mentioned handle might continue to find strong support near the 1.1675-70 horizontal zone.”

“On the upside, any recovery attempts might now confront fresh supply near the 1.1800 handle. Even if the pair manages to clear this immediate barrier, any further up-move should now be capped at a short-term descending trend-line resistance, currently near the 1.1830 region, also coinciding with 38.2% Fibonacci retracement level of 1.2092-1.1669 recent slide,” Haresh adds.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD appears well offered near 1.3160

GBP/USD builds on Tuesday’s losses, although it now manages to pick up some pace and bounce off earlier multi-month troughs near 1.3140. The Greenback’s solid performance and continued political turmoil in the UK are keeping Cable under persistent pressure, with little sign of a meaningful recovery.

EUR/USD softens to near 1.1350 as Fed hike bets rise ahead of PCE inflation data

The EUR/USD pair declines to around 1.1355 during the early Asian trading hours on Thursday. The Euro weakens to its lowest level since June 2025 against the US Dollar as traders increase their bets on US interest rate hikes later this year. The US May Personal Consumption Expenditures inflation data will be the highlight on Thursday.

Gold struggles near YTD lows on hawkish Fed bets, bullish USD ahead of US PCE

Gold is seen consolidating around $4,000 during the Asian session on Thursday as bears pause following the overnight slump to the lowest level since November 2025. Despite easing inflationary concerns amid falling oil prices, elevated Fed rate-hike bets help the US Dollar preserve its recent strong gains to the highest level since May 2025. This might continue to undermine the non-yielding bullion as the focus shifts to the release of the US PCE Price Index.

Strategy MSTR shares drop to two-year low as Bitcoin dip below $60K

The common shares of Strategy fell below $100 on Wednesday for the first time since March 2024, extending losses as Bitcoin's prolonged decline continues to weigh on investor perceptions of the company's leveraged crypto strategy. The company's MSTR stock closed trading at $94, reflecting a 9.3% decline.

US-Iran talks: The next 60 days will decide where Oil prices go next

Oil markets received some encouraging news after weeks of rising tensions in the Middle East. But let’s not get ahead of ourselves: we’re far from victory, and markets just seem to have priced out the worst-case scenario. The US and Iran have reportedly made "substantive progress" in talks in Switzerland and agreed on a framework for working toward a broader deal within 60 days.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.