- EUR/USD resumes the bullish path and recovers above 1.0700.
- The ECB’s speeches will be the protagonists of the session.
- Producer Prices and the Philadelphia Fed index will be the focus during the American session.
The common currency manages to shake off part of Wednesday’s pullback and pushes EUR/USD to rally above the 1.0700 barrier Thursday.
EUR/USD focuses on ECB and data
Despite the current bounce, EUR/USD keeps multi-session consolidation phase unchanged around the 1.0700 region amid alternating risk appetite trends.
In fact, market participants continue to watching developments from both the ECB and the Federal Reserve in regards to possible next steps in the normalization process ongoing, being the main drivers of price action at the moment.
In the absence of data releases in the euro zone, attention is expected to focus on the speeches of the members of the ECB Council Fabio Panetta, Luis De Guindos and Patrick Lane.
On the other side of the Atlantic, weekly initial jobless claims will be released, followed by production pricesconstruction permits, housing starts and the Philadelphia Fed manufacturing index.
Additionally, Cleveland Fed President Loretta Mesterfrom the St. Louis Fed, James Bullard and the governor of the FOMC, Lisa Cook They have a few speeches scheduled.
What can we expect from the Euro?
Despite the recent bounce towards the 1.0800 zone, EUR/USD is still within the multi-day consolidation phase and for the moment, has decent support near 1.0650.
Meanwhile, the evolution of the prices of the common currency should closely follow the dynamics of the dollar, as well as the possible next movements of the ECB after the central bank raised 50 basis points at its meeting last week.
Returning to the euro zone, it seems that the concern about a recession has dissipated, although it continues to be an important factor in sustaining the recovery of the common currency, as well as the hawkish discourse of the ECB.
EUR/USD levels
At time of writing, the EUR/USD pair is up 0.17% on the day, trading at 1.0705. The next upside barrier is at .0804 (Feb 14 high), followed by 1.1032 (Feb 2 high) and 1.1100 (round level). Elsewhere, a drop below 1.0655 (Feb 13 low) would target 1.0481 (Jan 6 low) on the way to 1.0325 (200-day SMA).
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.
