EUR/USD bounces back strongly as market sentiment improves

Source Fxstreet
Jun 24, 2024 10:35
  • EUR/USD rebounds swiftly from 1.0670 as the appeal for risk-perceived assets improves.
  • The US economic outlook appears to be stronger than its peers.
  • Weak preliminary Eurozone PMI boosts hopes of ECB’s subsequent rate cuts.

The EUR/USD pair recovers strongly from a weekly low of 1.0670 in Monday’s European session. The major currency pair bounces back as the appeal for risk-sensitive assets improves amid growing speculation that the Federal Reserve (Fed) will start reducing interest rates in the September meeting and will deliver two rate cuts this year.

S&P 500 futures have posted some gains in the London session. 10-Year US Treasury yields remain sluggish near 4.25%. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, corrects from the seven-week high of 105.90.

On Friday, the US Dollar (USD) performed strongly after the preliminary S&P Global PMI report for June showed that overall economic activity surprisingly expanded. Flash United States (US) Services business activity expanded to 26-month high at 55.1. The Manufacturing PMI rose to three-month high at 51.7.

Though the US Dollar corrects from seven-month high, its near-term appeal has improved. Where all major economies failed to meeting PMI estimates, the US economy surprisingly expanded at a faster pace than their prior release.

Meanwhile, the Euro delivers an upbeat performance against its peers in Monday’s session as investors digest political uncertainty in France ahead of  thefirst legislative elections round scheduled for June 30.

The Euro recovered despite the preliminary HCOB PMI report for June pointing to a slowdown in the Eurozone economy. Both Manufacturing and Services PMIs were weaker than expected, which has boosted expectations of subsequent rate cuts by the European Central Bank (ECB).

EUR/USD

Overview
Today last price 1.0722
Today Daily Change 0.0029
Today Daily Change % 0.27
Today daily open 1.0693
 
Trends
Daily SMA20 1.0795
Daily SMA50 1.0769
Daily SMA100 1.0796
Daily SMA200 1.0789
 
Levels
Previous Daily High 1.0721
Previous Daily Low 1.0671
Previous Weekly High 1.0762
Previous Weekly Low 1.0671
Previous Monthly High 1.0895
Previous Monthly Low 1.065
Daily Fibonacci 38.2% 1.069
Daily Fibonacci 61.8% 1.0702
Daily Pivot Point S1 1.0669
Daily Pivot Point S2 1.0645
Daily Pivot Point S3 1.0619
Daily Pivot Point R1 1.0719
Daily Pivot Point R2 1.0745
Daily Pivot Point R3 1.0768

 

 

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