April 21, 2024

EUR/USD Gets Off Multi-Day in the Vicinity of 1.0960, Looks Forward to ECB Speeches

The continuous selling bias that has attended the Euro keeps up its appearance soundly well enough to drag the EUR/USD to a new multi-day low point in the realm of 1.0960 in the trading session of Tuesday.

EUR/USD Gets Weaker After Powell’s Speech, Focus on USD

The EUR/USD pair has maintained a defensive position for the third consecutive session and it has retreated to the 1.0960 zones as a response to the aggressive policy implementation of March higher interest rates of the US dollar. It consequently appears to have boosted the hawkish inclination by the Federal Reserve Chair, Jerome Powell’s message, on Monday. The higher US bond yields and the lack of a way forward in the dialogue to achieve a ceasefire between Russia and Ukraine are contributing to weighing the pair down.

EUR/USD price chart. Source TradingView

The tenacious upward move of Germany’s ten-year benchmark bond yields which has revisited the 0.50% zones for the first time since it was last spotted there in October 2018 is a sharp contrast to the negative performance of the EUR/USD currency pair.

In viewing the European Central Bank, there has been no news coming from the Vice President, De Guindos, who stated in the early period of the session that there will be no stagnant inflation in the Eurozone, as he aligned himself with the bank’s President, Christine Lagarde.

While there are no data releases to be expected for now in the Eurozone, investors turn their attention to speeches expected to be delivered by the European Central Bank President, Christine Lagarde, and Board members Lane and Panetta.

On the other side of the Atlantic, the Federal Reserve index from Richmond is due to be published while the Federal Open Market Committee’s Daly, Mester, and Williams are all scheduled to give speeches later in the North American session. 

Things to Watch Out for Around the Euro

The EUR/USD currency pair keeps coming under downward pressure and it breaks under the major support level at 1.1000 figure during the early stage of the week. Thus far the pocket of strength the Euro has should be reinforced by speculations that the interest rate cycle by the European Central Bank is going to begin at a certain point towards the end of the year. While at that, increasing inflation, higher yields in German bonds, a consistent flow of economic recovery, and favorable results from fundamental events in the Eurozone all support a stronger Euro as things stand.  

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