It’s a different kind of 'Trump Bump' for EUR/USD

Omkar Godbole FXStreet Contributor

Trump Bump is associated with broad based US dollar strength and rally in the equities, base metals.

But what we are seeing now is a “different kind of Trump Bump” – Trump’s bearish comments on the US dollar and the dovish talk about the interest rate bumped up EUR/USD/led to broad based losses in the US dollar.

The 10-year treasury yield fell to a five-month low of 2.22%, thus weighing over the US dollar. The Trump-led sell-off in the US Dollar saw the EUR/USD close well above the 50-DMA level of 1.0656.

The currency pair was last seen trading around 1.0670 levels. German final CPI data for the month of March may not move EUR pairs as the focus remains on the Franco-German yield spread and broader market sentiment.

EUR/USD Technical Levels

A break above 1.0689 (Apr 5 high) would open up upside towards 1.0740 (Mar 29 low) and 1.0782 (Mar 17 high). On the other hand, a breakdown of support at 1.0656 (50-DMA) could yield a pull back to 1.0626 (100-DMA + 5-DMA) and 1.06 (zero figure).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

GBP/USD clings to 1.3500 amid marginal losses

GBP/USD alternates gains with losses around the 1.3500 neighbourhood on Tuesday. Indeed, Cable struggles to further extend its incipient recovery in a context of continuous instability in the Middle East and modest gains in the Greenback.

EUR/USD alternates gains with losses near 1.1540

EUR/USD navigates a tight range near 1.1550 in the latter part of Tuesday’s NA session. The US Dollar’s vacillating price action accompanies the pair while market participants gear up for the crucial US inflation data due on Wednesday.

Gold awaits US CPI inflation for the next big move

Gold is back on the bids and looks to regain the $4,400 level in Wednesday’s Asian trading, having found buyers near the $4,350 region. All eyes remain on the high-impact US Consumer Price Index data, which could determine if Gold stretches higher or corrects sharply.

Bitcoin steadies, Ethereum holds 50-day EMA, XRP rebounds from $1 support

Bitcoin, Ethereum and Ripple are showing mixed price action on Wednesday as traders assess key technical support levels. BTC remains under pressure after its recent decline, while ETH is attempting to extend its rebound from the 50-day Exponential Moving Average. Meanwhile, XRP is holding above the crucial $1 level, keeping its recovery attempt intact.

US Dollar: CPI keeps USD in tight ranges

OCBC’s Sim Moh Siong and Christopher Wong note the US Dollar softened as Fed hike expectations moderated and the US yield curve steepened. They argue that without a strong upside surprise in United States Consumer Price Index, the USD should stay rangebound, supporting carry trades.

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.