EUR / USD bounces modestly, approaching 1.1800

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  • The EUR / USD appears to break a four-day losing streak.
  • The US Dollar Index broke below 93.00 in the American session.
  • Risk appetite is making it difficult for the USD to find demand.

After spending most of the day in a relatively tight range above 1.1750, the pair EUR/USD It gained traction during US business hours and was last seen rising 0.15% on the day to 1.1796.

DXY reverses direction as Wall Street rally continues

In the absence of high-level macroeconomic data releases and fundamental developments, the perception of risk continues to affect the USD market valuation. Hours earlier, the US Dollar Index (DXY) reached its highest level since early April at 93.19 and did not allow the EUR / USD to rally.

With the major Wall Street indices capitalizing on Tuesday’s impressive rally and opening in positive territory on Wednesday, the dollar lost its strength. Reflecting renewed USD weakness, the DXY was down 0.1% on the day to 92.86.

On Thursday, the European Central Bank (ECB) will announce its Decision on Interest Rates and release the Monetary Policy Decision.

In anticipation of this event, “the latest announcement by the ECB, that purchases under the Pandemic Emergency Purchase Program (PEPP) during the next quarter will continue to be made at a significantly higher rate than during the first months of this year, reinforces our view that the ECB will remain very flexible for longer, “said Lee Sue Ann, economist at UOB Group.

Technical levels

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