EUR/USD appears consolidative near parity amidst risk-off mood.

EUR/USD returns to the negative territory and approaches parity… again.The European Commission released its Economic Forecasts.

Across the pond, Initial Claims and Producer Prices will take centre stage.

Sellers return to the single currency and drag EUR/USD back to the proximity of the parity level on Thursday.

EUR/USD weaker on USD-buying, recession talks.EUR/USD’s “dead cat bounce” on Wednesday ran out of steam around 1.0120, prompting sellers to eventually return to the market and expose the pair to keep challenging the key parity zone.

Indeed, the higher-than-expected US inflation figures on Wednesday prompted investors to start pricing in a probable 100 bps rate hike at the FOMC event in late July, which morphed into fresh oxygen to both the buck and US yields.

According to CME Group’s FedWatch Tool, the probability of a full point raise at the July 27 gathering is now at around 76% from just near 7% a month ago. A 75 bps hike sees its chances reduced to nearly 24% so far.

What to look for around EUR

Bears maintain the EUR/USD under heavy pressure and the acceleration of the downside should open the door to another potential breach of the parity level any time soon.

In the meantime, the price action around the single currency continues to follow increasing speculation of a probable recession in the euro area, dollar dynamics, geopolitical concerns, fragmentation worries and the Fed-ECB divergence.

 EURUSD stays within a touching distance of parity after US data

EURUSD is having a difficult time staging a rebound on Thursday and trading within a touching distance of the all-important parity level. The data from the US revealed that the annual PPI jumped above 11% in June. On a negative note, weekly jobless claims rose by 9,000.


GBP/USD pushes lower toward 1.1800 on broad dollar strength

GBPUSD stays on the back foot and continues to push lower toward 1.1800 in the American session on Thursday. Following the mixed macroeconomic data releases from the US, the US Dollar Index holds at fresh multi-decade highs above 108.50.


Gold falls toward $1,710 as US yields turn north

Gold came under renewed bearish pressure and declined toward $1,710 on Thursday. Following the stronger-than-expected June PPI data from the US, the benchmark 10-year US Treasury bond yield is up 1% on the day, weighing on XAU/USD. 

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