Euro gains support amid hawkish ECB expectations, subdued US Dollar
The Euro-Dollar rate is holding near 1.1660 as ING sees light Euro positioning and US policy risks keeping its 1.18 year-end target in play. The Euro to Dollar (EUR/USD) exchange rate slipped towards 1.1660 on Monday, giving back part of last week's surge while remaining comfortably above the levels seen through the first half of.
Current Setup and Live Chart The EUR/USD enters the new week with a moderately bullish bias due to last week's developments in the US Treasury market. The previous week began with US long-term Treasury yields spiking to levels not seen in decades.
EUR/USD and GBP/USD show signs of exhaustion as the US Dollar rebounds, while USD/CAD rises from 1.3750 support amid US-Canada trade tensions.
Euro: Rally vulnerable to reversal against US Dollar – Scotiabank
Euro: Range consolidation against US Dollar as growth gap narrows – Societe Generale
EUR/USD price forecast: Euro/US Dollar faces rejection at 0.618 Arc, potential decline toward 1.1642
Euro: Positioning supports gradual gains against US Dollar – ING
EUR/USD has regained ground in recent sessions, with the pair trading near 1.17 as broad-based weakness in the US dollar continues to dominate the foreign-exchange market. The main driver remains the changing monetary-policy outlook, with investors focused on whether the Federal Reserve can maintain a restrictive stance while the US economy shows signs of slowing.
The euro is being supported by improving European economic data and dollar weakness following the US Treasury's decision to expand its bond buyback program.
EUR/USD at highest level since may: What comes next?
Intraday levels show some weakness over the indicators that could lead to a correction before rebounding. As we see from the chart, the market is facing resistance around 1.1710 and if prices remain below it, a chance for a correction towards 1.1570 is likely.