EUR/USD gains ground above 1.0850, focus on Fedspeak

Source Fxstreet
May 19, 2024 23:46
  • EUR/USD holds positive ground near 1.0875 in Monday’s early Asian session. 
  • Many Fed officials emphasized their cautious stance to hold rates higher for longer. 
  • ECB’s Schnabel said they should move cautiously on rate cuts because there is a risk of easing prematurely. 

The EUR/USD pair trades on a stronger note around 1.0875 on Monday during the early Asian trading hours. The uptick in the major pair is bolstered by the softer Greenback. The Federal Reserve’s (Fed) Bostic, Barr, Waller, Jefferson, and Mester are scheduled to speak on Monday. Eurozone data highlight will be preliminary May PMI on Thursday.

Inflationary pressures eased in April, but the progress was unlikely to prompt the Fed to lower interest rates soon. The Fed Chair Jerome Powell said that he thinks the US central bank will need more data to gain confidence on whether inflation is steadily falling towards 2%. Furthermore, several Fed officials emphasized their cautious stance to hold rates higher for longer. 

Last week, Atlanta Fed President Raphael Bostic stated he saw signs of cooling inflation in the recent CPI report, but he prefers to watch the May and June data to make sure that the inflation doesn’t turn back the other way. Cleveland Fed President Loretta Mester said policy was well positioned, and it was premature to say progress on inflation had stalled. Richmond Fed President Tom Barkin noted the central bank needs to keep borrowing costs high for longer to ensure inflation is on track to its target. The lower bets on rate cut expectations from the US Fed might lift the USD and create a headwind for the EUR/USD pair. 

Across the pond, European Central Bank (ECB) policymaker Isabel Schnabel said the ECB may slash interest rates in June, but warned about further cuts in borrowing costs given uncertainty over the outlook. Nomura analysts stated “a gradual pace of three cuts this year is currently the most probable scenario,” despite the ECB's actions remaining data-dependent and could shift to more aggressive cuts if economic conditions worsen. 

EUR/USD

Overview
Today last price 1.0874
Today Daily Change 0.0005
Today Daily Change % 0.05
Today daily open 1.0869
 
Trends
Daily SMA20 1.0756
Daily SMA50 1.0783
Daily SMA100 1.082
Daily SMA200 1.0789
 
Levels
Previous Daily High 1.0878
Previous Daily Low 1.0836
Previous Weekly High 1.0895
Previous Weekly Low 1.0766
Previous Monthly High 1.0885
Previous Monthly Low 1.0601
Daily Fibonacci 38.2% 1.0862
Daily Fibonacci 61.8% 1.0852
Daily Pivot Point S1 1.0844
Daily Pivot Point S2 1.0818
Daily Pivot Point S3 1.0801
Daily Pivot Point R1 1.0886
Daily Pivot Point R2 1.0904
Daily Pivot Point R3 1.0929

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Tesla shareholders back Musk pay package, Adobe's outlook - what's moving marketsInvesting.com -- U.S. stock futures were mixed on Friday, after a streak of record high closes for the S&P 500 and Nasdaq Composite stretched into a fourth straight session. In a victory for Tesla (NA
Author  Investing.com
Investing.com -- U.S. stock futures were mixed on Friday, after a streak of record high closes for the S&P 500 and Nasdaq Composite stretched into a fourth straight session. In a victory for Tesla (NA
placeholder
Gold trades in familiar territory amid mixed signals from US economyGold (XAU/USD) trades marginally higher on Friday, exchanging hands just above the $2,300 mark during the early European session.
Author  FXStreet
Gold (XAU/USD) trades marginally higher on Friday, exchanging hands just above the $2,300 mark during the early European session.
placeholder
EUR/USD weakens as French election uncertainty, Fed’s hawkish narrative weighEUR/USD extends its downside below the round-level support of 1.0700, touching the lowest level in more than a month during Friday’s European session.
Author  FXStreet
EUR/USD extends its downside below the round-level support of 1.0700, touching the lowest level in more than a month during Friday’s European session.
placeholder
Investment banks lift Broadcom price targets after strong resultsInvesting.com - Broadcom (NASDAQ:AVGO) released impressive quarterly results earlier this week, and a number of investment banks have responded positively, raising their price targets as a result.The
Author  Investing.com
Investing.com - Broadcom (NASDAQ:AVGO) released impressive quarterly results earlier this week, and a number of investment banks have responded positively, raising their price targets as a result.The
placeholder
US Dollar rallies in flight for safety out of Europe’s political turmoilThe US Dollar (USD) rallies on Friday as traders flee out of the Japanese Yen (JPY) and the Euro (EUR). The renewed strength in the Greenback comes as sovereign bond yields in some countries in the Eurozone, particularly France, are spiking on the
Author  FXStreet
The US Dollar (USD) rallies on Friday as traders flee out of the Japanese Yen (JPY) and the Euro (EUR). The renewed strength in the Greenback comes as sovereign bond yields in some countries in the Eurozone, particularly France, are spiking on the
goTop
quote