It's been a rollercoaster of a year for the Euro so far, as the Iran war brought a bid to the currency in April, driven by inflation expectations going higher due to energy prices. The thought there was an energy-vulnerable Europe would be forced into higher prices which would then filter through into other products, and that led to a stronger Euro.
EURUSD retreat and closing again from support zone 1.1380 which still holding market above it As long as market holding trades above 1.1380 the chance for another advance still likely Below 1.1380 more of a drop could hit the market with supports at 1.1310 and 1.1210. SUPPORT RESISTANCE LEVEL1 1.1380 1.1500-25 LEVEL2 1.1310 1.1625 LEVEL3 […]
Euro weakens as ECB stays on hold while Middle East tensions boost the US Dollar
EUR/USD rose to 1.1429 on Thursday, with the US dollar continuing its moderate decline from the previous session. The market is assessing rising inflation risks driven by elevated energy prices against a backdrop of weakening economic data, while seeking further signals on Federal Reserve policy.
The ECB will announce its rate decision today at 12:15 GMT. The central bank is expected to leave its deposit rate unchanged at 2.25% after raising rates by 25 basis points in June, as policymakers assess the implications of the renewed U.S.-Iran conflict.
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EURUSD is still holding above the Intraday support at 1.1380 while managing to advance toward 1.1481 so far. Traders need to watch the support of 1.1380 as the market still has a chance to move higher.
Michael Boutros, Senior Market Analyst at FOREX.com, examines EUR/USD, the European Central Bank, and the critical technical levels that could determine the pair's next major move. With the ECB expected to leave interest rates unchanged, attention turns to Christine Lagarde's guidance, widening policy divergence with the Federal Reserve, and how rising energy prices could complicate the euro's outlook.
Euro struggles to extend gains as Middle East tensions support the US Dollar