EUR/USD made a new cycle high and ran out of energy, after three months of strong gains. In the opinion of Kit Juckes, Chief Global FX Strategist at Société Générale, Euro is a buy on dips barring new geopolitical developments.
It may be a dull day.“Were it not for the war in Ukraine on Europe’s inflation/growth trade-off, public finances and terms of trade; EUR/USD should now be a clear uptrend and ‘ought’ to be nearer 1.20.”
“Both the direct economic impact of the war and the negative effects on confidence of exposing European energy dependency matter, of course. But, if the impact of the war doesn’t increase (or go away completely), our rates forecasts justify another four figures or so of gains for EUR/USD this year (consistent with our EUR/USD 1.12 end-year forecast).” “It may be a dull day, but the Euro is a buy on dips and the Dollar a sell on rallies, barring new geopolitical; developments.”
EUR/USD is trading sideways above 1.0700 in Tuesday’s European trading, awaiting fresh impetus to extend the advance. The US Dollar pauses its sell-off, as the US Treasury bond yields rebound amid a mixed market mood. Fed Chair Powell’s speech is in focus.
EUR/USD News
GBP/USD drops toward 1.2150 amid cautious mood
GBP/USD is dropping to test 1.2150, portraying cautious markets ahead of speeches by BoE’s Bailey and Fed’s Powell. The US Dollar attempts a bounce amid hawkish Fed commentary and a tepid risk tone.
GBP/USD News
Gold sits near multi-month top ahead of Powell’s speech
Gold price extends its consolidative price move for the second successive day on Tuesday and holds steady near an eight-month high touched the previous day. The XAU/USD is currently placed just below the $1,880 level.
Free Forex Signals 