Euro bulls hope for a hawkish ECB on hot EU inflation 🔥 EURUSD has been rising steadily since the beginning of the week. Euro could lose its bullish momentum if ECB downplays inflation concerns. FX Forex Trading Preview
Annual HICP in the euro area came in much higher than expected in January.The shared currency suffered heavy losses against the dollar last week after FOMCconfirmed the Fed’s hawkish stance in the face of high inflation. Following a sharp decline to its lowest level since June 2020, however, EUR/USD managed to stage a decisive rebound during the first half of the week and advanced beyond 1.1300.
With the first FOMC meeting out of the way, markets now await the European Central Bank’s policy announcements and the euro could find it difficult to extend its rebound if investors are reminded of the policy divergence between the Fed and the ECB.The ECB is widely expected to leave its policy settings unchanged following the February policy meeting. In December, the ECB confirmed that it will end the Pandemic Purchase Emergency Programme in March.
At the time of press, the pair was trading near 1.1300, where the 20-day and the 50-day SMAs are located. In case EUR/USD starts using these levels as support, it could target the next static resistance at 1.1375 ahead of 1.1430 .stays near 50, suggesting that the pair needs to push higher to convince investors that the latest advance is the beginning of an uptrend rather than a correction.
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.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/USD: Euro to lose interest on soft EU inflation dataThe EUR/USD pair seems to have gone into a consolidation phase below 1.1300 as investors await EU inflation data. Euro could lose traction on soft EU
Read more »
Morning Bid: Betting on a 'very unlikely' ECB rate moveMorning Bid: Reserve Bank of Australia governor Philip Lowe stood firm against markets pricing several interest rate rises this year, showing he was adamant that rates would not rise until inflation is 'sustainably' within the target range
Read more »
EUR/USD Forex Signal: Cautiously Optimistic Ahead of ECBThe EUR/USD pair continued its bullish trend as investors waited for the upcoming interest rate decision by the European Central Bank (ECB).
Read more »
EUR/USD to pull back to the 1.1200 support after ECB meeting – INGEconomists at ING think that the European Central Bank (ECB) could disappoint the market’s hawkish expectations and send EUR/USD back to the 1.1200 su
Read more »
US T-bond yields stabilize, stock futures print losses as traders await ECB, BOEMarket sentiment stays sluggish as traders await key central bank verdicts amid reflation fears. While portraying the mood, US government bond yields
Read more »
EUR/USD hovers above 1.1300 as focus shifts to Thursday’s ECB meetingEUR/USD continues to trade well supported to the north of the 1.1300 level as the euro remains well positioned near the top of the daily G10 performan
Read more »