EUR/USD to gravitate to the lower end of the 1.0500-1.1250 range.

Economists at Credit Suisse analyze EUR/USD outlook and expect the pair to head toward the 1.0500 level.The market has seen countervailing forces face off in EUR/USD.Our predicted EUR/USD 1.0500-1.1250 range for Q2 looks valid again.

In 2023 the market has seen countervailing forces face off in EUR/USD. On the one hand, a hawkish ECB amid continued core inflation risk in the Euro-area have underpinned the EUR. On the other, the USD keeps benefiting from markets having underestimated inflation persistence and economic resilience in the US, alongside a continued carry premium. As Euro-area data start to soften, we expect the pair to gravitate to the lower end of this range.

EUR/USD holds near 1.0900 as Powell repeats hawkish message

EUR/USD is trading on the back foot near 1.0900 after Fed Chair Powell repeated his hawkish message in a speech early Thursday. Traders refrain from placing fresh bets on the pair, awaiting the Spanish and German inflation data for fresh cues on the ECB’s rate hike path.

EUR/USD News

USD/JPY turns south toward 144.00, Japan FX intervention likely?

USD/JPY has come under intense selling pressure and slides toward 144.00, with markets speculating a potential Japanese FX intervention after the pair approached the 145.00 key level. The pair ignores the uptick in the US Dollar and US Treasury bond yields on Powell’s hawkish rhetoric.

USD/JPY News

Gold approaches $1,900 on stronger US Dollar, hawkish central banks

Gold price attracts fresh sellers following an intraday uptick to the $1,912-$1,913 region and drifts into negative territory for the fourth successive day on Thursday. The XAU/USD remains on the defensive heading into the European session and is currently placed near its lowest level since mid-March.