EUR/USD could nudge closer to early February highs above 1.08 on hawkish ECB press conference.

EUR/USD built gains over 1.07. ECB forecast to raise rates 50 bps on Thursday and hawkish press conference by President Christine Lagarde could lift the pair above 1.08, economists at Société Générale report.

Fed repricing an opportunity for Euro bulls?

“It can be argued that a rebound in EGB yields and further tightening in US/EU spread could elicit further EUR/USD gains.”“The ECB is unlikely to shift down the tightening pace on Thursday following events in the US. A 50 bps rate increase in the depo rate to 3% or 100 bps above the neutral rate is still highly likely.

“Guidance in the statement on rates for 2Q (meeting-by meeting?), debate about speeding up of APP QT and updated forecasts for core inflation and wages could be key for rate spreads and the Euro.”

“A hawkish press conference could again nudge EUR/USD closer to the highs of early February above 1.08.”

EUR/USD stabilizes above 1.0700 following earlier pullback

EUR/USD has stabilized above 1.0700 after having retreated slightly below that level earlier in the session. Although February inflation data from the US helped the US Dollar gather strength and weighed on the pair, the positive shift witnessed in risk sentiment limits the pair downside.

EUR/USD News

GBP/USD loses traction, declines toward 1.2150

GBP/USD spiked to a session high of 1.2200 but reversed its direction and declined toward 1.2150 with the US Dollar recovering from daily lows. The annual CPI in the US declined to 6% in February as expected while the monthly core CPI came in slightly higher than forecast.

GBP/USD News

Gold tries to hold above $1,900 as US yields gain traction

Gold price came under renewed bearish pressure and declined to the $1,900 area in the American session. The benchmark 10-year US Treasury bond yield is up nearly 2% on the day after February inflation data from the US, forcing XAU/USD to stay on the back foot.