- The dollar falls on almost all fronts as stock markets rise.
- EUR/USD continues to recover, is positive for the week.
- Without impact data ahead, the ECB meeting on Thursday appears.
The EUR/USD rises for the second day in a row and recently climbed as high as 1.0992, reaching the highest level in six days. The pair then pulled back and is trading around 1.0960, ahead of the American session,
Wednesday’s rally helps put EUR/USD in positive territory so far this week. If this is confirmed, the euro would cut a streak of four weeks in a row with losses. The upside at the moment looks like a correction and the dominant trend is still down.
Dollar falls on optimism and despite “yields”
The advance of the EUR/USD on Wednesday has as a key factor the retreat of the dollar in the market. The green ticket loses ground after days with strong increases, before an improvement in the mood of the markets.
The Wall Street futures point to an opening with increases of up to 2% in the main indices. Oil and metals are pulling back. Treasury yields are up and trading at weekly highs at various parts of the curve.
The focus continues to be on what’s new since Ukraine and the Western response. As far as data is concerned, the economic calendar on Wednesday does not look busy. From the US, the data on job postings stands out. In addition, US oil inventory numbers will come out and the Treasury will place a 10-year debt. On Thursday it is the turn of the European Central Bank meeting and the US retail inflation data.
Technical levels
Source: Fx Street
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