EUR/USD remains on the defensive amid modest USD strength, downside seems cushioned – by anilpanchal7 EURUSD ECB Fed RiskAversion Growth
pair. The Federal Reserve , though skipped a rate hike last week, signalled that borrowing costs may still need to rise as much as 50 bps by the end of this year. The markets were quick to react and are now pricing in another 25-bps lift-off at the July FOMC meeting, which, in turn, triggers a fresh leg up in the US bond yields and lends some support to the buck.
Apart from this, a generally weaker tone around the equity markets further benefits the Greenback's relative safe-haven status and contributes to capping the upside for the EUR/USD pair. Concerns about a global economic downturn, particularly in China, overshadow reports that China is considering a broad stimulus package to bolster economic support and continues to weigh on investors' sentiment.
The downside for the EUR/USD pair, however, seems cushioned, at least for the time being, in the wake of the European Central Bank's hawkish. It is worth recalling that the ECB hiked interest rates for the eighth straight time last Wednesday, to the highest in 22 years and indicated that additional rate hikes will be needed to bring Eurozone inflation to its medium-term target of 2%. The inflation projection for this year was raised to 5.1% from 4.
Traders also seem reluctant to place aggressive bets and might prefer to wait on the sidelines ahead ofChair Jerome Powell's two-day congressional testimony starting this Wednesday. Apart from this, comments by a slew of influential FOMC members will be looked upon for fresh cues about the Fed's future rate-hike path, which will play a key role in driving the USD demand and help determine the near-term trajectory for the EUR/USD pair.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Pairs in Focus This Week \u2013 AUD/USD, EUR/USD, USD/JPYGet the Forex Forecast using fundamentals, sentiment, and technical position analyses for major pairs for the week of June 18th, 2022 here.
Consulte Mais informação »
EUR/USD: Weekly Forecast 18th June - 24th JuneThe EURUSD provided bullish speculators of the currency pair plenty of opportunities to feel optimistic last week- Trading Forex
Consulte Mais informação »
EUR/USD Price Analysis: Bearish spinning top, overbought RSI direct Euro sellers toward 1.0900EUR/USD Price Analysis: Bearish spinning top, overbought RSI direct Euro sellers toward 1.0900 EURUSD Technical Analysis ChartPatterns SwingTrading Candlesticks
Consulte Mais informação »
EUR/USD consolidates around 1.0940 due to mixed responses about Fed’s rate guidanceThe EUR/USD pair is oscillating in a narrow range around 1.0940 in the late Asian session. The major currency pair is demonstrating a non-directional
Consulte Mais informação »
EUR/USD continues to target 1.1000 – UOBFurther upside prompts EUR/USD to refocus on the 1.1000 hurdle according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang. K
Consulte Mais informação »
EUR/USD Forex Signal: Bullish Pennant Points to More GainsThe EUR/USD exchange rate jumped sharply last week after the European Central Bank (ECB) and the Federal Reserve offered diverging decisions.
Consulte Mais informação »