- The US dollar corrects lower across the board on Wednesday.
- The euro is the winner amid comments from officials and data from the ECB.
- EUR/USD rises for the second day in a row, easing bearish pressure.
The EUR/USD holding gains and testing daily highs around 1.0860 in US hours, supported by a US dollar correction across the board.
The dollar finally falls
Comments from European Central Bank officials on Wednesday mentioned the possibility of a rate hike during the fourth quarter, partially undermining Lagarde’s message from last week. German inflation data for March beat expectations and industrial production rose in the euro zone in February. The comments and the numbers helped the euro.
A new poll suggests a win for French President Macron against Marie Le Pen, but warns voters are unwilling to admit their preference for Le Pen. The debate between both candidates is today.
The weakness of the US dollar is also helping to boost the EUR/USD. A rally in Treasury bonds weighed on the dollar. The US 10-year yield fell to 2.87%, moving away from multi-year highs. US data showed US home prices hit an all-time high in March, although existing home sales fell again, showing signs of a slowdown in the sector. Later on Wednesday, the Federal Reserve will publish the Beige Book.
EUR/USD reached its highest point on Wednesday at 1.0866, the highest level in almost a week. It then pulled back, finding support above 1.0820. It remains near the top of the range, with a bullish intraday bias.
Source: Fx Street
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.