- Rise of the dollar cuts with the tours in ranges in the foreign exchange market.
- EUR/USD with bearish intraday bias, still close to recent highs.
- ECB decision on Thursday, next week the Fed.
The EUR/USD broke out of the range between 1.0220 and 1.0270, and quickly fell to 1.0171, marking a new low for the day. The setback occurred before a general advance of the dollar.
The US Dollar Index (DXY) moved into positive territory in the last hour, while futures on Wall Street fell into negative territory, cutting a part of Tuesday’s gains.
The move involved cutting several hours of sideways trading in small ranges in financial markets. In the last minutes, the EUR/USD managed to return above 1.0200, moving away from the low. Hours ago, the pair had reached as high as 1.0271, a two-week high.
many spotlights
The critical event ahead for the EUR/USD is the meeting of the European Central Bank from Thursday. An increase in the interest rate is expected. The possibility of a more “hawkish” ECB was boosting the euro. The event is expected to generate high volatility. In addition, the central bank will announce a new instrument to combat “fragmentation”.
Another focus is on Italy. He raised the expectation that Mario Draghi will continue as prime minister after his speech in Parliament. This is reflected in a sharp drop in Italian bond yields.
In the US, data on the real estate sector will be published on Wednesday, which should not have a major impact. There, the expectation is set on what the Fed’s decision will be next week, with the consensus pointing to a rise of 75 basis points.
Technical levels
Source: Fx Street
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