- The euro strengthens in the market and marks daily highs against the pound and the Swiss franc.
- EUR/USD bounces from 1.1165 and returns firmly above 1.1200
- Focus continues on Ukraine, important data from the US is coming.
EUR/USD recovered in the European session after falling as low as 1.1165 and climbed as high as 1.1236, marking a new daily high. The rebound was accompanied by a continued recovery in the markets and a certain strength in the euro.
The common currency was boosted in the market. The EUR/GBP and the EUR/CHF they jumped to new highs breaking the ranges of the last hours and climbed to 0.8375 and 1.0405, respectively. Stock markets in Europe are rising strongly and have posted new daily highs in the last hour, recovering from Thursday’s crash.
The EUR/USD’s advance in the last hour came despite a rise in Treasury yields. The 10-year rate returned above 2%, while the 30-year rate exceeded 2.30%. DXY is down 0.18%.
The focus remains on issues related to Russia’s invasion of Ukraine. The latest reports speak of new Russian attacks and at the same time, of the possibility of talks. Russia stated that it is ready to send a delegation to negotiate.
Traders will also be watching for US data to be released. At 13:30 GMT, the personal income and spending report for January will be released, which includes data on the personal consumption expenditure price index. At the same time, orders for durable goods will be known. Later, at 15:00 GMT, the University of Michigan consumer confidence report for February and pending home sales figures for January will be released.
recovery in progress
The recovery remains under way in the EUR/USD. The next strong resistance is seen at 1.1250, and then the focus will turn to 1.1285 before 1.1300. The bullish intraday tone could turn negative on a return below 1.1195. The break of 1.1160 would open the way for a test of 1.1100/05.
Technical levels
Source: Fx Street
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