EUR/USD climbed to its highest level in nearly two weeks at 1.0700 on Monday. But the pair could edge lower toward 1.06 today, in the view of economists at ING.
European hawks in focus
“Helping EUR/USD yesterday were comments from ECB ultra hawk, Robert Holzmann, that the ECB should deliver four more 50 bps rate hikes. ECB Chief Economist Philip Lane tried to calm things down by suggesting the ECB should not go onto autopilot after what should be a 50 bps hike this month. But the market is more sensitive to the hawks given the sticky inflation data.”
“We do not see any ECB speakers scheduled today. Powell’s testimony should dominate today and might nudge EUR/USD back to the lower end of the 1.0600-1.0700 range.”
EUR/USD consolidates below 1.0700 ahead of Fed Powell’s testimony
EUR/USD is keeping its range play intact below 1.0700 in the early European morning. The pair is capped by a cautious market mood and a renewed uptick in the US Dollar while weaker US Treasury yields lend some support. All eyes are on Powell’s testimony.
EUR/USD News
GBP/USD defends gains below 1.2050 as US Dollar recovers
GBP/USD is paring back gains below 1.2050, fading the rebound in early European trading. Renewed Brexit concerns, as DUP seeks consultation on the post-Brexit deal, limit the upside in the pair while the US Dollar recovers amid a cautious mood ahead of Powell’s testimony.
GBP/USD News
Gold clings to key EMA joint as Fed Chair Powell’s testimony looms
Gold price (XAU/USD) portrays the market’s cautious mood as it treads water around the key moving averages during early Tuesday in Europe, close to $1,848 by the press time.
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