- EUR/USD falls for second day in a row, still under pressure.
- Dollar mixed on Wednesday ahead of US jobs data and Powell exposure.
- Inflation in the Eurozone marks a new record, while the attention continues on Ukraine.
EUR/USD is falling on Wednesday for the second day in a row. The pair hit a new low since May 2020 at 1.1058 during the European session and then bounced back, hitting levels above 1.1100 but unable to assert itself above.
In the American session preview, the EUR/USD is trading at 1.1080/90, with the bearish bias intact. The dollar remains relatively firm in the market, in a climate of caution that persists, with the focus on the situation in Ukraine and on the markets.
Inflation on the rise in the Eurozone, US data and Powell ahead
After the data by country with figures higher than expected, it was not a big surprise that inflation in the Eurozone will reach 5.8% in February, a new record, which puts the European Central Bank in trouble. The largest increases were in energy and goods. Added to the above is the current rise in the price of oil, which may continue to put upward pressure on prices. The ECB will pronounce itself next week, when the Governing Board meets on Thursday.
In the US on Wednesday the ADP employment report will be published, which is expected to show an increase of 400,000 jobs in the private sector. Attention will then turn to the Jerome Powell exhibit. The president of the Federal Reserve will speak before a Congressional Committee (he will also do so on Thursday before another) for the presentation of the semi-annual report on monetary policy. Charles Evans of the Chicago Fed and James Bullard of the St. Louis Fed will speak publicly. In the afternoon of the American session the Fed will publish the Beige Book.
Technical levels
Source: Fx Street
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