EUR/USD flirts with 3-day highs near 1.1870

EUR/USD re-tests the key resistance around 1.1870.
The dollar remains on the defensive on risk-on mood.
The Fed publishes its Monetary Policy Report later within the session.
The buying pressure within the European currency remains well and sound and now pushes EUR/USD back to the 1.1870 region, or 3-day highs.

EUR/USD extends the bounce off 1.1780
EUR/USD adds to the optimism seen within the last half of the week and now gains around a cent from fresh lows within the 1.1780 region (Wednesday/Thursday) to the present 1.1870 region.

Spot gained fresh buying interest on the rear of dollar weakness, which is successively underpinned by the invertors’ preference for the riskier assets.

Absent relevant releases within the euro docket, the largely anticipated results from the ECB’s strategy review (Thursday) and zip new from Lagarde at her speech on Friday, the eye shifted to the ECB’s Accounts of the June meeting.

Indeed, many members favoured scaling back the asset purchase programme in light of the development within the outlook for growth and inflation. On the latter, long-term inflation expectations remain subdued in opinion of members, while they stressed the importance of rummaging through the transitory higher consumer prices.

The Accounts also noted that higher markets rates could render in tighter financing conditions.

 

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