EUR/USD remains depressed below 1.2200, focus on US PCE, budget

EUR/USD reverses Thursday’s recovery, holds lower ground near-weekly bottom.
DXY benefits from firmer US Treasury yields during quiet sessions.
Market sentiment dwindles amid mixed signals for stimulus, inflation.
Eurozone sentiment figures offers intermediate entertainment before the key US data/events.
EUR/USD remains heavy inside a 10-pips trading range around intraday low, down 0.09% near 1.2185 heading into Friday’s European session. In doing so, the currency-major pair fades bounce off the weekly low, marked the previous day, mainly on the US dollar rebound before the key inflation figures and budget announcements.

The US dollar index (DXY) benefits from the market’s rush to safety as cautious sentiment before crucial catalysts. Also favoring the greenback gauge might be the US Treasury yields that stay firmer for the second consecutive day.

That said, upbeat US data and chatters over US President Joe Biden’s $6.0 trillion budget proposal trimmed the USD losses during the late Thursday. The recovery moves could also enjoy US Treasury Secretary Janet Yellen’s comments rejecting reflation fears.

Meanwhile, uncertainty over Republicans’ support for the heavy stimulus, especially when the infrastructure spending plan of $1.7 trillion is already looming amid the record deficit, adds to the market’s prefer to the US dollar. Furthermore, A quiet session in Asia and therefore the covid woes in Japan and Australia also put a safe-haven bid under the greenback.

admin

Read Previous

Gold Price Analysis: XAU/USD on track to retest the multi-month highs above $1900

Read Next

Crude Oil Futures: Scope for extra upside

Leave a Reply

Your email address will not be published. Required fields are marked *