- The dollar remains firm in a cautious context.
- Inflation in the Eurozone marks a new record in June.
- EUR/USD low of the year exposed again.
The EUR/USD recovery is behind us and is under pressure again. The pair is trading at daily lows at 1.0397, with a bearish tone, in a context of a general rise in the dollar.
Inflation does not stop in the Eurozone
Hours ago it was known that inflation in the Eurozone in June reached a new record of 8.6% (annual), rising more than expected. The data has the aggravating circumstance that in Germany there was a slowdown due to temporary factors.
The rise in inflation along with the latest data contributes to fortifying fears of a recession. In the US, the manufacturing ISM for June will be published in a few minutes.
The dollar is among the best-performing currencies, even as Treasury yields decline. At the same time German titles are also soaring.
Technically, EUR/USD could not sustain the rebound after failing to hold above 1.0470. The pullback accelerated after losing 1.0440. Below 1.0400 the next support is seen at 1.0380 and then the low for the year appears at the 1.0350 area. On the upside, resistances are at 1.0440 and then 1.0490.
Technical levels
Source: Fx Street
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