EUR/USD keeps the post-Fed upside well in place above 1.0200.The buying interest around the European currency remains well in place and motivates EUR/USD to return to the 1.0230 region on Thursday.
EUR/USD now looks to German data.EUR/USD advances for the second session in a row following the FOMC event on Wednesday, where the Fed raised rates by 75 bps as widely expected.
However, Powell’s press conference unexpectedly showed a not-so-hawkish tone, particularly after signaling that the current fast pace of the normalization process could slow down at some point.The current uptick in the pair comes in tandem with further recovery in the German 10y Bunds yields, which approach the key 2.00% level in the European morning.
What to look for around EUR
Euro bulls regain the upper hand and push EUR/USD further north of the 1.0200 hurdle in response to renewed upside traction following the FOMC event on Wednesday.
Price action around the European currency, in the meantime, is expected to closely follow dollar dynamics, geopolitical concerns, fragmentation worries and the Fed-ECB divergence.On the negatives for the single currency emerges the so far increasing speculation of a potential recession in the region, which looks somewhat propped up by lower sentiment readings and the renewed downtrend in some fundamentals.
EUR/USD drops below 1.0150 as dollar rebounds
EUR/USD has declined below 1.0150 during the European trading hours on Thursday. The data from the euro area revealed a sharp drop in economic sentiment and business confidence in July. Investors await the second-quarter GDP growth data from the US.
GBP/USD loses traction, closes in on 1.2100
GBP/USD has lost its bullish momentum during the European session on Thursday and turned negative below 1.2150. The dollar capitalizes on safe-haven flows and weighs on the pair ahead of the key macroeconomic data releases from the US.
Gold clings to modest gains near $1,740
Gold has managed to build on Wednesday’s gains and advanced to a fresh multi-week high above $1,740. With the benchmark 10-year US Treasury bond yield holding its ground ahead of US GDP data, however, XAU/USD struggles to continue to push higher.