February 22, 2024

EUR/USD Recovers from Initial Low Points Close to 1.0940

After the EUR/USD currency pair saw a fast slide to the region of 1.0940, it was able to regain a measure of strength and it is now retargeting the major obstacle at 1.1000 in the early hours of Monday.

EUR/USD Pair: Next Downtick is at 1.0900

The EUR/USD currency pair is currently shifting between profits and losses in the region under 1.1000 on the wings of the continuously improved market sentiment towards the US dollar.

For real, the more gains as witnessed maintained a boost by the improvements in the US yields as well as widespread expectations in the market of a more aggressive policy rate by the US Federal Reserve. As there is a lack of meaningful progress in the peace talks brokered between Russia and Ukraine, it sends a cautious atmosphere into the financial market as investors are waiting time before placing any aggressive bets.

EUR/USD price chart. Source TradingView

The lack of any published reports in the European dockets on Monday now leaves all attention to be focused on flashing trade numbers and equally the Federal Reserve’s manufacturing gauge from Dallas scheduled to be published in the latter part of the North American session. 

Expectations to Watch Out for in the Euro

There is more downward pressure that has come the way of the EUR/USD pair and it caused it to revisit the 1.0950/40 band as a way of responding to the stronger demands that arose for the US dollar as the week began. Once in a while, flashes of strength that attend a single currency are expected to seem reinforced by the calculations that come at the beginning of the interest rates increment phase by the European Central Bank at certain points by the end of the year.

Whereas, increased inflation, higher yields in Germany, the reliable pattern of economic recovery, and better results from major stats in the Eurozone all support the Euro’s recovery.

Major events to watch out for in the Eurozone this week are the Consumer Confidence report coming from Germany scheduled to be released on Tuesday; the Economic and Monetary Union Consumer Confidence, a speech from the European Central Bank’s President Lagarde, Inflation Rates from Germany, all due for Wednesday; Retail Sales report from Germany, Changes in Unemployment, Rates of Unemployment, due to be released on Thursday; and Flash inflation rates report scheduled for Friday.

Geopolitical situations will also be in very close view as they influence speculations.

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