EUR/USD could now climb to the 1.1080 region – UOB

In opinion of FX Strategists at UOB Group, the current upside momentum carries the potential to push EUR/USD to the 1.1080 zone in the short-term horizon.

Key QuotesFL

24-hour view: “EUR traded in a choppy manner yesterday before closing higher at 1.1032 (+0.74%). The underlying tone has firmed and EUR could edge higher from here. That said, a break of the major resistance at 1.1080 appears unlikely. Support is at 1.1005 followed by 1.0980.”

Next 1-3 weeks: “We have expected EUR to trade sideways since the start of the week. After trading sideways for several days, EUR is approaching the top of our expected range of 1.0870/1.1080. Shorter-term upward momentum has improved somewhat and EUR could rise above 1.1080. Looking ahead, EUR has to break 1.1120 before a sustained advance is likely. At this stage, the chance for EUR to break 1.1120 is not high but it would remain intact as long as EUR does not move below the ‘strong support’ level, currently at 1.0920.”

GBP/USD holds gains around 1.3150 ahead of BOE rate decision.GBP/USD is trading around 1.3150, receding from weekly highs. Bulls turn cautious ahead of the BOE interest rate decision, Russia-Ukraine peace talks. BOE is up for the third consecutive rate-hike to tame inflation. The US dollar and Treasury yields fail to capitalize on the hawkish Fed outcome. 

GBP/USD News 

EUR/USD remains pressured below 1.1050 amid cautious optimism.EUR/USD is off the weekly high, trading below 1.1050 amid a cautiously optimistic market mood. The US dollar drops with the Treasury yields, in the aftermath of the hawkish Fed decision, keeping the downside cushioned. Lagarde, Russia-Ukraine peace talks in focus. 

EUR/USD News 

Gold: Road to recovery eyes $1,940 and $1,950.Gold price remains in the hands of buyers this Thursday, following a decent comeback amidst a hawkish Fed. Concerns over risks to global economic growth play out and influence gold price, as the focus remains on the ongoing Russia-Ukraine peace talks. 

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