Euro: Sideways bias within defined band against US Dollar – UOB

FXStreet Insights Team FXStreet

UOB’s Quek Ser Leang highlights that EUR/USD price action offers few fresh clues after a dip to 1.1381 and rebound to 1.1436, with the pair expected to trade between 1.1385 and 1.1435 intraday. On a 1–3 week view, recent Euro weakness has stabilised, with trading likely confined to a 1.1335–1.1470 range. A break of 1.1390/1.1410 would expose 1.1210.

Euro-Dollar stabilises after recent weakness

"24-HOUR VIEW: While we indicated yesterday that EUR “could edge higher,” we pointed out that “based on the prevailing momentum, any advance is likely limited to a test of 1.1445.” The subsequent price movements did not turn out as expected, as EUR dipped to 1.1381, rebounded to 1.1436 before closing marginally higher by 0.01% at 1.1421. The price action provides no fresh clues. Today, EUR could trade between 1.1385 and 1.1435."

"1-3 WEEKS VIEW: Our update from two days ago (29 Jun, spot at 1.1385) still stands. As highlighted, the recent “weakness in EUR has stabilised,” and EUR “is likely to trade in a range between 1.1335 and 1.1470.” "

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD turns negative; slips back to 1.3530

GBP/USD comes under pressure and weakens toward the 1.3530 zone on Tuesday. Cable thus leaves behind two daily upticks in a row and retreats further from Monday’s multi-week tops past 1.3570 following humble gains in the Greenback and disheartening UK jobs data.

EUR/USD comes under pressure near 1.1570

EUR/USD could not sustain the earlier bullish attempt toward the proximity of 1.1600 the figure, coming under fresh downside pressure and revisiting the 1.1580-1.1570 band as the NA session draws to a close on Tuesday. The better tone in the US Dollar in the latter part of the day weighs on the pair amid steady volatility in the Middle East. Looking forward, the release of the FOMC Minutes takes centre stage on Wednesday.

Gold consolidates below $4,350; looks to FOMC Minutes for fresh impetus

Gold holds steady below $4,350, following the previous day's heavy losses, as traders await the release of FOMC Minutes for cues about the Fed's future policy path. In the meantime, the recent surge in US bond yields, bolstered by inflation fears stemming from rising oil prices, supports the US Dollar amid the Middle East crisis and should cap the non-yielding bullion.

Bitcoin volatility falls below Nasdaq as market activity hits multi-year low

Bitcoin’s 30-day volatility has fallen below that of the Nasdaq for only the fifth time on record, as subdued trading activity and declining volumes point to an unusually quiet period, according to a Tuesday report from K33. BTC's 30-day volatility has dropped to 1.132%, marking its fourth-lowest reading of the 2020s. Seven-day volatility also dropped to 0.52%, its lowest level since 2023.

Fiscal concerns and doubts on Fed independence send US yields to long-term highs

US Treasury yields keep rising across the curve this week, with the yield for the 30-year Treasury bond reaching its highest level since 2007, during the global financial crisis, at 5.33% so far on Monday. A mix of concerns about the ballooning US fiscal deficit and growing doubts about the Federal Reserve’s Independence are increasing pressure on US Government Bonds.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.