- EUR/USD marks its highest since April 2022.
- The euro driven by ECB expectations.
- The dollar remains under pressure due to advances in the stock markets and due to the moderation of the Fed.
EUR/USD rallied to 1.0926 on Monday, the highest intraday level since April 21, 2022. After failing to firm above 1.0920 it lost momentum and fell back below 1.0900.
In the previous American session it is trading around 1.0890, in positive territory for the day, after having closed on Friday near 1.0850. The pair’s advance is supported by the general decline in the dollar, and a firmer euro.
The official ofthe European Central Bank, Klaas Knot said on Monday that he expects the central bank to raise interest rates by 50 basis points in February and March. Another member of the Governing Board, Olli Rehn also spoke in favor of “significant” increases during these months.
Comments in favor of a continuation of significant increases by the ECB continue to support the eurowhich had previously lost steam after a report indicated that after February the central bank would soften its hikes.
For its part, the dollar continues downhill, given the expectation that February 1 will be one of the last rate hikes of the Federal Reserve. In addition, equity markets are advancing, reducing the demand for the dollar.
On Monday that will publish the Eurozone Consumer Confidence Index and the Chicago Fed Activity Index. Tuesday will be the turn of the preliminary estimate for January of the PMIs for the Eurozone and the US.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
