EUR/USD unstoppable, looks to 1.1400 ahead of Draghi

Pablo Piovano FXStreet

The demand for the single currency stays everything but abated today, now pushing EUR/USD to fresh multi-month tops near 1.1370.

EUR/USD boosted by Draghi, USD-selling

Following a small drop on Monday, the pair has not only managed to revert the negative start but it has also climbed to levels last seen in June 2016 above 1.1360 ahead of the opening bell in Euroland.

Unexpected hawkish comments by President Draghi at the ECB Forum on Tuesday encouraged fresh buyers to turn up and drive spot higher, quickly leaving behind the critical 1.1300 barrier.

It is all the opposite on the USD-side. Tracked by the US Dollar Index (DXY), the buck plummeted to the 96.00 neighbourhood and is now threatening to challenge post-Trump’s win lows in the 95.90 region.

Ahead in the session, the last day of the ECB Forum in Portugal should keep markets entertained with speeches by Draghi, Kuroda, Carney and Poloz. On the data front, Italian flash CPI for the month of June could grab some attention while pending home sales and DoE’s report are due across the pond.

EUR/USD levels to watch

At the moment, the pair is gaining 0.20% at 1.1363 facing the next up barrier at 1.1434 (high Jun.24 2016) seconded by 1.1466 (high Apr.12 2016) and finally 1.1616 (high May 3 2016). On the other hand, a breakdown of 1.1218 (20-day sma) would target 1.1117 (low Jun. 20) en route to 1.1052 (55-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

USD/JPY holds pullback from 161.80 on hawkish BoJ-speak

USD/JPY is holding above 161.00 in the Asian session on Friday, on a retreat from its highest level since July 2024 set the previous day. Hawkish BoJ commentary and April Minutes affirm further rate hike expectations, offsetting the softer Japanese National CPI print and support the Japanese Yen as intervention fears loom.

AUD/USD attacks 0.7000 amid stronger US Dollar

AUD/USD attacks 0.7000 in the Asian session on Friday, remaining close to the weekly low, and seems poised to register modest weekly losses. The US Dollar sits near its highest level since May 2025 as the Fed's hawkish tilt overshadows optimism over the US-Iran peace deal, weighing on the pair.

Gold sits at weekly lows below $4,200 as Fed's hawkish tilt boosts USD

Gold falls for the third consecutive day and weakens below $4,200, sitting at a fresh weekly low in the Asian session on Friday. Despite the latest optimism over a US-Iran peace deal, the Fed's hawkish tilt helps the US Dollar preserve its strong weekly gains to over a yearly high, undermining the non-yielding bullion.

Economics week ahead

Consumer resilience is holding for now, but underlying fundamentals continue to erode. Incoming data—like control group retail sales and higher-frequency card data—point to a solid nominal consumption backdrop in May.

Back above 100: Kevin Warsh’s first Fed meeting sparks US Dollar rally

The US Dollar Index did a phoenix comeback, rising from its ashes and reconquering 100. The reasons behind the US Dollar rally are pretty clear: the Memorandum of Understanding between the United States and Iran, and a hawkish Federal Reserve. Both events were long-awaited and much expected. However, the market reacted with surprise when there were no surprises at all.

The next big AI trade may not be about chips or software

Artificial intelligence has already created some of the biggest winners in modern market history. Chipmakers have surged, data centre construction is booming, and electricity demand forecasts are changing globally.