Mon. May 20th, 2024

EUR/USD FALLS TOWARD 1.0600 ON HIGHER EXPECTATIONS OF THE FED PROLONGING HIGHER RATES

EUR/USD DIVES TO FRESH FIVE-MONTH LOWS NEAR 1.0600EUR/USD DIVES TO FRESH FIVE-MONTH LOWS NEAR 1.0600

EUR/USD extends its losing streak as the Fed is expected to maintain higher interest rates for an extended period.

US Retail Sales (MoM) experienced a 0.7% increase in March, against the expected 0.3% and 0.9% prior.

The dovish remarks from the ECB’s officials contribute to downward pressure on the Euro.

EUR/USD continues to lose ground for the sixth successive session, trading near 1.0610 during the Asian hours on Tuesday.

The elevated US Dollar (USD) is exerting pressure on the EUR/USD pair, potentially influenced by the higher US Treasury yields.

Furthermore, better-than-expected Retail Sales figures from the United States (US) have amplified expectations that the Federal Reserve (Fed) may maintain higher interest rates for an extended period.

US Dollar Index (DXY) extends its gains to near 106.20, with 2-year and 10-year yields on US Treasury bonds standing at 4.92% and 4.60%, respectively, at the time of writing.

Escalating geopolitical tensions in the Middle East are prompting investors to flock towards the safe-haven US Dollar (USD) as a refuge.

US Retail Sales (MoM) increased by 0.7% in March, exceeding the market expectations of 0.3%. The previous reading was revised to 0.9% from 0.6% in February.

Retail Sales Control Group rose by 1.1% against the previous increase of 0.3%.

Federal Reserve (Fed) Bank of San Francisco President Mary Daly recently stated that while there has been notable progress on inflation, there is still further ground to cover.

She emphasized the importance of being confident that inflation is on a path toward the target before taking action.

Daly also highlighted that the economy is experiencing solid growth, the labor market remains robust, and inflation is currently above the target level.

The Euro depreciates following dovish remarks from European Central Bank (ECB) officials on Monday.

Gediminas Šimkus, a member of the ECB Governing Council, stated that there is a greater than 50% likelihood of witnessing more than three rate cuts this year, according to Reuters.

Additionally, ECB Chief Economist Philip Lane highlighted that there has been notably less progress concerning domestic inflation compared to broader inflation measures.

Despite potential near-term fluctuations in the inflation outlook, the projected convergence of inflation to the target by 2025 remains supported.

EUR/USD

Overview
Today last price1.0614
Today Daily Change-0.0010
Today Daily Change %-0.09
Today daily open1.0624
Trends
Daily SMA201.0801
Daily SMA501.0821
Daily SMA1001.0864
Daily SMA2001.0828
Levels
Previous Daily High1.0665
Previous Daily Low1.062
Previous Weekly High1.0885
Previous Weekly Low1.0622
Previous Monthly High1.0981
Previous Monthly Low1.0768
Daily Fibonacci 38.2%1.0637
Daily Fibonacci 61.8%1.0648
Daily Pivot Point S11.0608
Daily Pivot Point S21.0592
Daily Pivot Point S31.0563
Daily Pivot Point R11.0653
Daily Pivot Point R21.0682
Daily Pivot Point R31.0698

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