EUR/USD records new 2022 lows near 1.1080, focus on geopolitics, data.

EUR/USD loses the grip further and drops to 1.1080/75 zone.The greenback remains well bid amidst rising risk aversion.

Germany Unemployment Rate dropped to 5.0% in February.Sellers remain well in control of sentiment around the single currency, dragging.EUR/USD to fresh 2022 lows in the 1.1080/75 band midweek.

EUR/USD weaker on risk-off mood, focuses on data.EUR/USD, in line with the rest of the risk complex, grinds lower for yet another session and revisits the sub-1.1100 area to record new YTD lows near 1.1080 against the backdrop of relentless upside in the US dollar and generally solid demand for safe havens – all in response to the unabated progress of the Russian invasion of Ukraine.

The persistent buying pressure in the bond markets has also kept German 10y Bund yields on the defensive and in negative territory for the first time since late January.The euro has shown no reaction to cash markets in Euroland now pricing in 20 bps of rate hikes by the ECB towards year end (from 15 bps recorded during early trade).

EUR/USD continues to look to the geopolitical scenario and risk appetite trends for near-term direction. On this, the recent deterioration of the Russia-Ukrainian situation is expected to keep the pair under pressure amidst solid risk-off sentiment and demand for the greenback. In the meantime, bouts of strength in the pair should remain underpinned by speculation of a potential interest rate hike by the ECB probably sooner than many anticipate, higher German yields, persevering elevated inflation, and a decent pace of economic activity and auspicious results from key fundamentals in the region. The threat to this view, as usual, comes from the Fed and a potential tighter-than-expected start of the normalization of its monetary conditions.

EUR/USD levels to watch.So far, spot is losing 0.29% at 1.1087 and faces the next up barrier at 1.1317 (55-day SMA) followed by 1.1390 (weekly high Feb.21) and finally 1.1395 (weekly high Feb.16). On the other hand, a drop below 1.1079 (2022 low Mar.2) would target 1.1000 (round level) en route to 1.0870 (low May 25 2020).

EUR/USD stays below 1.1100 after hot EU inflation data.EUR/USD continues to trade deep in the negative territory below 1.1100 as the hot eurozone inflation data fail to help the shared currency find demand. Eurostat reported on Wednesday that the annual HICP jumped to 5.8% in February, surpassing the market expectation of 5.4%. The dollar holds its ground amid escalating Ukraine crisis, ahead of US ADP, Powell. 

EUR/USD News.GBP/USD remains on the back foot below 1.3300 amid a cautious mood. The US dollar holds firmer, as the sentiment remains dampened by global growth worries, courtesy of the Russia-Ukraine conflict-led surge in oil prices. Focus on US jobs, Powell’s testimony. Gold at the mercy of Russia-Ukraine news, key levels to watch.Gold price appears choppy but within a familiar range above the $1,900 mark, as the prevalent risk sentiment remains the main market driver amid updates surrounding the Russia-Ukraine war.

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