- EUR/USD bounces off monthly lows near 1.0670.
- The dollar loses more ground after Powell’s comments.
- Retail sales in Italy surprised to the upside in December.
After falling to fresh lows at 1.0669 on Tuesday, the EUR/USD manages to recover ground on Wednesday to reach a daily high at 1.0760. At time of writing, the pair is trading above 1.0754, gaining 0.24% on the day.
EUR/USD: The next target is at 1.0800
EUR/USD is trading with decent gains and recovering to the 1.0750 zone thanks to renewed selling pressure surrounding the dollar mid-week.
Adding wings to the bullish bias in the pair also comes from increased investor appetite for risk-associated assets in a context where market participants appear to have fully assessed the recent strong US jobs data. USA, as well as President Powell’s remarks on Tuesday.
The daily bounce is also supported by an equally decent rise in 10-year German Bund yields, which are approaching the 2.40% level amid the fourth consecutive daily rise.
Nothing worth mentioning on the euro’s agenda, except for the 0.2% monthly contraction of retail sales in Italy during the month of December. In annual terms, sales increased by 3.4%.
On the US calendar, MBA mortgage applications and wholesale inventories will be released later. In addition, speeches by Fed members J.Williams (permanent voter, centrist), M.Barr (permanent voter, centrist) and C.Waller (permanent voter, hawk) will be in focus.
EUR/USD Levels
The next bullish barrier is expected at 1.1032 (2023 high on Feb 2), followed by 1.1100 (round level) and finally 1.1184 (weekly high on Mar 31, 2022). On the flip side, a drop below 1.0697 (Feb 7 monthly low) would target 1.0669 (55-day SMA) en route to 1.0481 (2023 low Jan 6).
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.
