- Euro among the best performing currencies on Wednesday, ending losing streak.
- EUR/USD is having the best day since the beginning of April.
- Data ahead: US existing home sales and Fed Beige Book.
EUR/USD is having the best day so far in April, rising more than 70 pips, fueled by a dollar correction and some euro strength. The pair started the day below 1.0800 and recently climbed to 1.0866, the highest level since April 14th.
Data and yields
In it Eurozone it became known that wholesale inflation in Germany rose more than expected in March, with an increase of 4.9% (30.9% annual). Another report showed that industrial production in the Eurozone rose 0.7% in February (2% annual).
Added to the data was the comment of the European Central Bank official, Martins Kazaks, who mentioned the possibility of a rise in the interest rate “as soon as in July.” The words served to give the euro an extra boost.
The dollar For its part, it is correcting throughout the market. DXY falls 0.68%, one of the most significant declines in weeks and trades at 100.30. At the same time, Treasuries rallied, pushing yields to two-day lows.
In the US, the existing home sales report for March will be published. As far as the Fed is concerned, Mary Daly from the San Francisco Fed, Charles Evans from Chicago and Raphale Bostic from Atlanta will speak at different events. In the afternoon of the American session, the Fed’s Beige Book on the state of the economy will be released. Another relevant event that is taking place is the annual meeting of the International Monetary Fund – World Bank.
Unable to break 1.0760, the rebound came
After Staying above 1.0760, a critical support for the EUR/USD, a rally and correction followed. In the process it broke above 1.0845, a relevant resistance. To the upside, 1.0880 appears, before 1.0900. Then the strong key barrier at 1.0945 will follow.
In case of a pullback, now 1.0840 is the first support followed by 1.0810. If firming below 1.0800, EUR/USD weakness would be expected to return, leaving 1.0760 exposed again.
Technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
