EURUSD is clinging to little gains around 1.1220.
The EURUSD is clinging to little gains around 1.1220, marking the first daily profit. In three days heading into Thursday’s European session. In doing so, the EURUSD pair applauds broad US Dollar weakening. While ignoring mixed concerns about the Eurozone.
Reuters’ research, however, underscores the multi-year high inflation and Ukrainian war to highlight the bloc’s bleak job realities and spur the confidence surrounding the Eurozone. On the same vein, European Central Bank (ECB) Governing Council member Yannis Stournaras told CGTN Europe on Wednesday that he wasn’t sure if the ECB will raise rates again after the 25-basis point increase next week. The policymaker also said that inflation is declining and that future interest rate rises may harm the economy.
The US dollar falls amid mixed market conditions as investors prepare for the FOMC meeting next week.
It’s worth noting that the US economy is attracting more uncertainties than the Eurozone, which keeps the EURUSD higher, especially since Fed bets predict a policy flip after July while ECB discussions are somewhat less dovish.
On the other hand, the US Dollar Index (DXY) falls 0.25% intraday to retest the round figure of 100.00, capping a two-day rally from the lowest level since April 2022. With This excuses the previous day’s disappointing US housing statistics and conflicting feelings about the Fed, while ignoring the euphoria among US banks.
It should be noted that recent worries of a US-China trade war, fueled by statements from a Chinese ambassador and a move by the US House of Representatives on outbound investments and AI chips, appear to be prodding the EURUSD bulls.
Among these bets, the S&P500 Futures show minor losses, while US Treasury bond rates trade mixed near the weekly low.
Looking forward, provisional Eurozone Consumer Confidence figures for July will precede US Initial Jobless Claims and Existing Home Sales to adorn the economic calendar. However, the risk catalysts should be given special consideration. for explicit guidance. If the anticipated EU readings come in stronger, the EURUSD may pass the important 1.1280 barrier amid widespread US Dollar weakness, while the otherwise situation may not entice bearish until US data and mood boost the greenback.
Technical examination
The EURUSD pair’s successful trading above the 1.1145-40 support confluence, which includes the 10-DMA and the prior resistance line stretched from February, allows the Euro pair to target the 1.1280 resistance zone, which includes levels established in early 2022. However, the almost overbought RSI levels put the major currency pair’s upward potential beyond 1.1280 .
