EUR/USD approaches 1.1400 as risk-on mood weighs on USD, Russia-Ukraine news, PMIs eyed By anilpanchal7 EURUSD RiskAppetite PMI Politics CentralBanks
marked an explosion was heard in the center of the rebel-held city of Donetsk in eastern Ukraine. However, the sentiment quickly improved after AFP quoted French President Emanuel Macron who proposed a summit including US President Joe Biden and his Russian counterpart Vladimir Putin. The news also mentioned that both the parties have accepted the “principle” of a summit.
While portraying the risk-on mood, the S&P 500 Futures reverse the early Asian loss of around 0.50% while theIn addition to the firmer sentiment, recently softer Fedspeak also weighs on the USD and helps the EUR/USD to consolidate the latest losses. That said, Federal Reserve Bank of Chicago President and FOMC member Charles Evans said on Friday that the current Fed policy had been "wrong-footed" in the face of high inflation, but may not need to become restrictive.
On the same line, Bloomberg quoted European Central Bank sources to mention, “Policymakers are edging towards a rate hike before the end of 2022 to stem more persistent than expected inflationary pressures and a stronger inflation outlook.” Looking forward, EUR/USD traders will pay close attention to the Russia-Ukraine developments as the Biden-Putin summit may de-escalate market fears of a war between Moscow and Kyiv. The meeting between US Secretary of State Antony Blinken and Russian Foreign Minister Sergei Lavrov is also important for fresh impulse.
On an intraday basis, preliminary readings of February month’s PMI figures for Germany, the Eurozone and the US will be crucial. Also important will be a speech fromAlthough steady RSI suggests short-term EUR/USD grind between the 100-DMA and 12-day-old support, respectively around 1.1425 and 1.1290, recently bearish MACD signals keep sellers hopeful.