EUR/USD holds positive ground above 1.0700, eyes on German CPI data

Source Fxstreet
Apr 29, 2024 00:50
  • EUR/USD gains ground 1.0710 amid the softer USD on Monday. 
  • The US PCE inflation rose by 2.7% YoY in March, compared to 2.5% prior, which was hotter-than-expected. 
  • The ECB might cut interest rates before the Fed amid the cooler inflation in the Eurozone. 

The EUR/USD pair trades on a stronger note around 1.0710 during the early Asian trading hours on Monday. The weaker US Dollar (USD) below the 106.00 mark provides some support to the major pair. The first reading of the German Consumer Price Index (CPI) for April is due on Monday. All eyes will be on the Federal Reserve monetary policy meeting on Wednesday, with no change in rate expected. 

The recent US inflation data dialed back their expectation of when the Federal Reserve (Fed) will start cutting interest rates. According to the CME FedWatch tool, the chance of a rate cut by the July meeting falls from 50% last week to 25%, while traders have priced in nearly 60% odds that the Fed will cut the interest rate at its September meeting. This, in turn, might lift the Greenback and cap the upside of the EUR/USD pair in the near term. 

The US Bureau of Economic Analysis revealed on Friday that the Personal Consumption Expenditures (PCE) Price Index rose by 2.7% YoY in March, compared to the previous reading of 2.5%, above the 2.6% estimated. The Core PCE figure, the Fed's preferred inflation measure, held steady at 2.8% YoY in March, firmer than the 2.6% expected. On a monthly basis, both headline PCE and the core PCE Price Index rose 0.3% in March.

Across the pond, the European Central Bank (ECB) emphasized cooler inflation in the Eurozone and signaled that the ECB might cut interest rates before the Fed. ECB President Christine Lagarde hinted that the central bank is still likely to begin lowering its deposit rate from a record-high 4% in June, but has been careful to leave open its options for the path beyond.

EUR/USD

Overview
Today last price 1.0709
Today Daily Change 0.0015
Today Daily Change % 0.14
Today daily open 1.0694
 
Trends
Daily SMA20 1.0727
Daily SMA50 1.0805
Daily SMA100 1.0848
Daily SMA200 1.0806
 
Levels
Previous Daily High 1.0753
Previous Daily Low 1.0674
Previous Weekly High 1.0753
Previous Weekly Low 1.0624
Previous Monthly High 1.0981
Previous Monthly Low 1.0768
Daily Fibonacci 38.2% 1.0704
Daily Fibonacci 61.8% 1.0723
Daily Pivot Point S1 1.0661
Daily Pivot Point S2 1.0628
Daily Pivot Point S3 1.0582
Daily Pivot Point R1 1.074
Daily Pivot Point R2 1.0786
Daily Pivot Point R3 1.0819

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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