- The euro is approaching daily highs amid a pullback in the US dollar.
- Lower yields and higher share prices propel EUR / USD.
The pair EUR/USD it rose even higher after bottoming in European hours at 1.1997. The euro quickly rose again above 1.2000. It tested the level below that area again, only to strengthen, bouncing higher to 1.2038, slightly below the Asian session high. It remains above 1.2025, supported by a decline in the US dollar.
Higher stock prices and lower US yields pushed the DXY back into negative territory. The Dow Jones is up 0.58% at daily highs, while the Nasdaq is now up 0.77%. The 10-year yield stands at 1,573%.
A busy Thursday ahead
After days of no relevant US economic data, jobless claims data are due Thursday. It will also be the turn of the Existing Home Sales report. The key event of the day will be the meeting of the European Central Bank (ECB). No change in policy is expected. Attention will be paid to Lagarde’s press conference and signs for future announcements.
“We expect the recent ranges to remain intact in the EURUSD as the ECB is unlikely to provide a strong directional signal, and the market’s attention will quickly turn to next week’s FOMC. The generally bullish message that we expect suggests some moderate bullish risks for the spot, but only a very aggressive result should see a clear break to the upside as the 100 (1.2058) DMA helps provide a ceiling, ”TD Securities analysts said. .
Technical levels
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