DXY rebounds from 101.93 as Treasury yields retreat despite hot U.S. CPI, while EUR/USD targets 1.1237 and GBP/USD tests 1.3281 resistance.
EUR/USD and GBP/USD bounce after dip, is a bigger FX reversal coming? [Video]
EUR/USD Price Forecast: Extends recovery above 1.1200 at US Dollar's expense
EUR/USD Outlook: MUFG Links Sub-1.10 Risk to Higher US Yields Hotter US inflation has reinforced MUFG's downside scenario for the Euro against the US Dollar, despite its doubts about the scale of Fed tightening. MUFG's warning that the Euro could fall below $1.10 has gained relevance after stronger-than-expected US inflation.
The trading week continues to unfold and weakness around the euro has once again become increasingly evident in the short term. This can be seen in the recent performance of EUR/USD, which has declined roughly 0.3% over the last three trading sessions, highlighting renewed strength in the U.S. dollar.
The Euro is still hovering around the downtrend resistance line as more pressure still affects the market. As long as prices hold below the resistance of 1.1240-80 the drop pressure could continue towards the target and support of 1.1065, which in turn could lead to a correction.
EUR/USD Price Forecast: Surrenders early gains amid caution ahead of US inflation data
Euro holds mild gains above 1.1200 as US Dollar drifts with US CPI on tap
Euro: Rebound tests key resistance band against US Dollar – UOB
DXY slips below its rising trendline ahead of U.S. CPI, while EUR/USD eyes a breakout above 1.1233 and GBP/USD targets 1.3284 amid Fed and BoE policy uncertainty.
The US dollar rally is showing signs of exhaustion ahead of US CPI, despite expectations for a sharp rise in inflation. With EUR/USD oversold, bearish momentum fading and higher inflation potentially priced in, even a modest CPI disappointment could trigger a dollar pullback and provide the euro with some relief.
Euro: Soft undertone but fair value higher against US Dollar – Scotiabank