Further upward bias in the Greenback weighed on the riskier assets, lending further legs to the US Dollar Index (DXY) and keeping the price action around EUR/USD subdued well below the 1.0900 support.
EUR/USD dropped to multi-session lows near 1.0870. The Dollar started the week on a firm note ahead of the FOMC. Next on the downside for the pair comes the 200-day SMA. Further upward bias in the Greenback weighed on the riskier assets, lending further legs to the US Dollar Index and keeping the price action around EUR/USD subdued well below the 1.0900 support. In this context, spot reached multi-day lows in the 1.0870–1.0865 band, while the USD Index flirted with the key 200-day SMA near 103.
All in all, the relatively sluggish fundamentals of the euro area, coupled with the resilient US economy, strengthen expectations of a stronger Dollar in the medium term, particularly as both the ECB and the Fed potentially implement their easing measures almost simultaneously. In such a scenario, EUR/USD could experience a more significant correction, initially targeting its year-to-date low around 1.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US Dollar Weekly Forecast: Attention now shifts to the 200-day SMA- The USD Index (DXY) extended its weekly decline below 104.00.
Read more »
AUD/USD Forecast: Downside alleviated above the 200-day SMAThe continuation of the sell-off in the greenback lent legs to the broader risk-linked assets and propelled AUD/USD to the area of multi-session peaks well north of the 0.6500 hurdle on Wednesday.
Read more »
– EUR/USD Testing 200-SDMA Resistance, EUR/GBP Slipping Into SupportThe German economy remains weak and the single currency is starting to struggle against the US dollar and Sterling
Read more »
US Dollar Forecast: US CPI to Spark Next Big Move - EUR/USD, USD/JPY, GBP/USDFebruary's U.S. inflation data is poised to ignite heightened market volatility in the upcoming week, playing a pivotal in shaping the near-term outlook for the U.S. dollar.
Read more »
EUR/USD Forecast: Hawkish ECB commentary helps Euro hold above key supportEUR/USD came within a touching distance of 1.0900 in the early American session on Tuesday but managed to erase its daily losses.
Read more »
EUR/USD Weekly Forecast: Tepid recovery does not grant an interim bottomThe EUR/USD pair ended its losing streak and posted modest weekly gains to settle in the 1.0830 price zone on Friday, as investors continued to drop the Greenback.
Read more »