EUR/USD finds barricades around 1.0360, resumes downside journey amid risk-off mood – Crypto News – Crypto News
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EUR/USD rebound pokes parity, US/German statistics, Jackson Hole eyed EUR/USD rebound pokes parity, US/German statistics, Jackson Hole eyed

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EUR/USD finds barricades around 1.0360, resumes downside journey amid risk-off mood – Crypto News

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  • EUR/USD is expected to resume its downside journey after surrendering the day’s low at 1.0340 as market mood sours.
  • The long-term US Treasury yields have dropped further below 3.65% as anxiety ahead of Fed Powell’s speech soars.
  • As the Fed is utterly dedicated to bringing price stability, a slowdown in the growth rate is highly recommended.

The EUR/USD The pair has faced barricades around 1.0360 after attempting a recovery post a sheer fall to near day’s low at 1.0340. The asset has sensed selling interest as a rebound in the risk-off impulse has weakened risk-sensitive currencies.

The Euro bulls are having a bad day as protests in China by individuals having an agenda of rollback of Covid-19 lockdown measures have trimmed investors’ risk appetite, Meanwhile, the US Dollar Index (DXY) is struggling to sustain above a two-day high at 106.40 as investors are getting anxious ahead of the speech from Federal Reserve (Fed) chair Jerome Powellwhich will be dictated on Wednesday.

S&P500 futures are continuously facing immense pressure. The 10-year US Treasury yields have extended their losses below 3.65%. As the Fed is expected to decelerate the rate hike paced by minutes from the Federal Open Market Committee (FOMC), released last week, the returns on US Treasury bonds are declining vigorously.

The speech from Fed Chair will provide cues about the likely monetary policy action for December’s monetary policy. Apart from that, investors are focusing on the preliminary United States Gross Domestic Product (GDP) data.

The preliminary GDP for the third quarter is seen unchanged at 2.6%. As the Fed is utterly dedicated to bringing price stability, a slowdown in the growth rate is highly recommended. A spell of improvement in the growth rates will continue to keep reign as inflation as it indicates robust demand from individuals, which doesn’t lead to a decline in price growth by the manufacturers and service providers.

On the Eurozone front, investors are awaiting the release of the euro zone inflationdata. The headline HICP is expected to decline to 10.4% vs. the prior release of 10.6%. While the core HICP data excludes oil and food prices are seen unchanged at 5%.

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