The selling pressure surrounding the euro intensifies on Thursday, pushing the EURUSD rate to three-week lows at 1.0920.
Despite USD purchasing, the EURUSD declines.
The continued bid bias surrounding the dollar drives the USD Index (DXY). To nudge closer to the 102.00 zone as EURUSD begins its weekly run lower and approaches the 1.0920 area.
Meanwhile, recent hawkish remarks from the ECB’s rate-setters failed to give the pair sustained legs. it has so far encountered a difficult upward hurdle at the 1.1100 level. Kazaks, a Board member who is currently employed by the ECB. Stated on Wednesday that given the current situation of persistently high inflation. A rate rise in July could not be the final one. According to rumors, there will likely be another quarter-point increase in September, bringing the deposit rate to 4.0%.
On Thursday, there are no planned announcements for the eurozone. So all eyes will be on the release of producer prices and the customary weekly first jobless claims overseas.
What to watch for in relation to EUR.
The EURUSD is under new downward pressure as a result of the comeback of risk aversion and the subsequent drive of investors towards the dollar.
The value of the euro is anticipated to fluctuate in a manner that is quite similar to that of the US Dollar, and any variations in strategy between the Fed and the ECB with regard to their intentions to raise interest rates are likely to have an influence.
Going forward, hawkish ECB language will Despite this stance appearing in contradiction to some sluggishness in the region’s economic fundamentals, I advocate more rate rises.
