EUR/USD trades with modest intraday losses, holds above 1.0800 ahead of ECB – by hareshmenghani EURUSD Fed Bonds ECB Currencies
, held interest rates steady at the end of a two-day policy meeting on Wednesday, as expected, but signalled that borrowing costs may still need to rise by as much as 50 bps by the end of this year.
In fact, the so-called"dot plot" indicated that officials now see rates peaking at 5.6% this year, higher than March's projection of 5.1%. The Fed also sees slightly stronger economic growth and forecasts the economy to grow by 1% this year — up from the 0.4% rise projected in May — before rising 1.1% in 2024 and 1.8% in 2025. This triggers a fresh leg up in the US Treasury bond yields and helps revive the USD demand.
Traders, however, might refrain from placing aggressive bearish bets ahead of the highly-anticipated European Central Bank meeting later this Thursday. The ECB is all but certain to hike interest rates by 25 bps - to their highest level in 22 years - and leave the door open for further policy tightening to combat high inflation. It is worth mentioning that the headline CPI in the Eurozone decelerate to 6.1% in May, though is still more than three times the ECB's 2% target.
The aforementioned mixed fundamental backdrop, along with the overnight sustained break and acceptance above the 100-day Simple Moving Average , support prospects for the emergence of some dip-buying around the EUR/USD pair. Hence, it will be prudent to wait for strong follow-through selling before confirming that the recent positive move witnessed over the past week or so has run its course and positioning for any meaningful downside.
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 retreats from three-week high towards 1.0750 as Fed vs. ECB battle intensifiesEUR/USD renews intraday low around 1.0785 as it pares the latest gains at the highest levels in three weeks on the Fed day, i.e. Wednesday. That said,
Read more »
EUR/USD Forex Signal: Bulls in Control Ahead of Fed, ECB Dec$EURUSD Forex Signal: Bulls in Control Ahead of Fed, ECB Decisions
Read more »
EUR/USD stays bulls above 1.0800 on Fed’s hawkish halt, ECB eyedEUR/USD bulls are on a joyride as they take a breather at the highest levels in a month after rising for three consecutive days before retreating from
Read more »
EUR/USD Price Analysis: Euro bulls approach 1.0860 hurdle ahead of ECB Interest Rate DecisionEUR/USD Price Analysis: Euro bulls approach 1.0860 hurdle ahead of ECB Interest Rate Decision EURUSD ECB Technical Analysis ChartPatterns TrendFollowing
Read more »
EUR/USD Forex Signal: Rising to Test Resistance in $1.08 Are$EURUSD Forex Signal: Rising to Test Resistance in $1.08 Area
Read more »
EUR/USD: Risks are tilted towards additional gains – ScotiabankEUR/USD tests technical resistance at 1.0810. Economists at Scotiabank analyze the pair’s technical outlook. Push above 1.0810 to target an extension
Read more »