EUR/USD to stay soft near 1.0700/0720 .

Economists at ING discuss EUR/USD outlook.1.05/1.07 to prove the base for a push towards 1.15 in the third quarter

“There were reports in the market yesterday of some upside interest in EUR/USD going through the FX options market. We can see why. 1.0700 is a decent support area for EUR/USD and we do see the outside risk of a break to 1.0500. However, the eurozone terms of trade story is so much better than it was last summer and that is why our medium-term models identify EUR/USD as very under-valued.”

“Our view is that 1.05/1.07 proves the base for a push towards 1.15 in the third quarter, once clearer signs of US disinflation and slowing activity become a lot clearer.”“Expect EUR/USD to stay soft near 1.0700/0720 and perhaps take a decisive turn on the release of the US inflation data.”

GBP/USD holds gains toward 1.2350 after mixed UK Retail Sales data

GBP/USD is holding its recovery gains toward 1.2350 after the UK Retail Sales data came in mixed for April. Cable is advancing as the US Dollar is losing ground amid a correction alongside the US Treasury yields. Focus now shifts toward the US PCE inflation data. 


EUR/USD climbs to near 1.0740 as ECB to raise rates further despite German recession

The EUR/USD pair has climbed above the critical resistance of 1.0740 in the early European session after a firmer recovery from near the round-level support of 1.0700. The major currency pair is anticipated to extend further as the US Dollar Index (DXY) has extended its correction further to near 104.08.


Gold recovers further from two-month low, climbs back above $1,950

Gold price attracts some buyers in the vicinity of the 100-day Simple Moving Average (SMA) and stages a modest recovery from the $1,937-$1,936 area, or over a two-month low touched the previous day.

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