EUR/USD gathers some steam and retargets 1.0200, dollar looks offered.

EUR/USD reverses the recent weakness and targets 1.0200.

The single currency so far manages to regain some upside traction and pushes.EUR/USD back to the 1.0180 region on Thursday.

EUR/USD stronger on USD-selling

The now soft stance surrounding the greenback allows the current rebound in the risk complex and prompts EUR/USD to attempt another move to the key barrier in the 1.0200 region.

The dollar, in the meantime, appears on the back foot despite higher yields and the recent hawkish rhetoric from several Fed speakers, who in general reinforced the ongoing tightening process and advocated for further rate hikes in the next months, always amidst the current context persistent elevated inflation.

The bounce in the pair so far comes pari passu with another improvement in the German 10y Bund yields, this time flirting with the 0.90% area.In Germany, the Construction PMI worsened to 43.7 in July and Factory Orders contracted at a monthly 0.4% in June.Data across the pond will include Initial Claims and the Balance of Trade.

What to look for around EUR

EUR/USD looks to regain composure and initially targets the 1.0200 zone ahead of recent tops near 1.0300, always on the back of the renewed selling pressure hitting the dollar.

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 propped up by dwindling sentiment readings among investors and the renewed downtrend in some fundamentals.

GBP/USD consolidates gains around 1.2170 ahead of BOE ‘Super Thursday’

GBP/USD is consolidating gains above 1.2150, as investors turn on the sidelines ahead of the expected 50 bps BOE rate hike decision. The US dollar stays on the back foot with yields amid a better mood. US jobs data is awaited as well. 


EUR/USD edges higher toward 1.0200

EUR/USD has staged a modest rebound during the European trading hours on Thursday and climbed toward 1.0200. The US Dollar Index stays relatively quiet ahead of the weekly Jobless Claims and Goods Trade Balance data from the US, allowing the pair to hold its ground.


Gold climbs toward $1,780 amid softer USD

Gold gains traction for the second successive day on Thursday amid modest USD weakness and rises toward $1,780. The prospects for a further policy tightening by the Fed could help US T-bond yield push higher and limit XAU/USD’s upside.

Leave a Comment

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s