This Wednesday, EUR/USD is advancing to near 1.0750 in the European morning. Investors digested the latest comments from US President Joe Biden and Fed Chair Powell. The US Dollar remains on the back foot with yields ahead of Fedspeak.
EUR/USD staged a modest rebound early Wednesday having met support near 1.0700 on Tuesday. The pair’s near-term technical outlook suggests that the bearish bias stays intact but an extended recovery could be witnessed in case sellers fail to defend 1.0760.
On Tuesday, mixed comments from European Central Bank (ECB) officials made it difficult for the Euro to outperform its rivals. ECB policymaker Francois Villeroy de Galhau said that they were not very far from the peak of inflation.
On a hawkish note, policymaker Joachim Nagel reiterated that further, significant rate hikes will be needed, adding that the ECB rates are not yet restrictive. Finally, ECB Executive Board Member Isabel Schnabel adopted a neutral tone by saying that the ECB interns to raise key rates by 50 basis points (bps) in March while not committing to any additional policy action afterward.
On the other hand, FOMC Chairman Jerome Powell acknowledged that the January jobs report was stronger than anyone expected. Powell added that they might need to do more on rates if they continue to get strong labor market or higher inflation data.
The Chairman’s comments, however, don’t seem to have a significant impact on rate hike expectations. The CME Group FedWatch Tool points to a nearly 70% probability of two 25 bps hikes in March and May, virtually unchanged from before Powell’s interview.
There won’t be any high-tier macroeconomic data releases on Wednesday and investors will keep a close eye on the central bank speaking. New York Fed President Williams, Atlanta Fed President Bostic, and Minneapolis Fed President Kashkari will be delivering speeches later in the day.
The market positioning suggests that the US Dollar has the potential to continue to gather strength in case Fed commentary causes markets to continue to price in a rate increase in May. On the other hand, an optimistic tone inflation outlook could limit the currency’s gains and allow EUR/USD to extend its upward correction.
In the meantime, the US stock index futures trade mixed in the early European session. Wall Street’s main indexes registered strong gains on Tuesday and the continuation of the risk rally in the second half could weigh on the US Dollar and vice versa.
This Post Has 23 Comments
buying drugs from canada: Pharmacies in Canada that ship to the US – canadian pharmacy 365
ventolin 4mg: buy Ventolin – ventolin.com
buy furosemide online: furosemide online – generic lasix
buy rybelsus: rybelsus generic – Semaglutide pharmacy price
I love how simple yet addictive the Dino Game is—perfect for quick breaks. https://dinogame321212.therestaurant.jp/
lasix 100 mg: buy furosemide – furosemide
acquisto farmaci con ricetta: BRUFEN 600 mg 30 compresse prezzo – acquisto farmaci con ricetta
viagra naturale in farmacia senza ricetta: viagra senza ricetta – pillole per erezione immediata
Farmacia online miglior prezzo: Farmacia online piu conveniente – farmacia online
Farmacia online miglior prezzo: Cialis generico prezzo – farmacie online sicure
acquisto farmaci con ricetta: Farmacia online piГ№ conveniente – farmacia online
comprare farmaci online all’estero: acquistare farmaci senza ricetta – Farmacia online piГ№ conveniente
comprare farmaci online con ricetta: Cialis generico farmacia – farmaci senza ricetta elenco
sildenafilo 100mg precio espaГ±a: comprar viagra en espana – sildenafilo 100mg precio espaГ±a
sildenafilo 100mg precio espaГ±a: comprar viagra en espana – viagra entrega inmediata
sildenafilo 100mg farmacia: comprar viagra en espaГ±a amazon – sildenafil 100mg genГ©rico
farmacia online barata: Tadalafilo precio – farmacia barata
Xoilac TV là website xem trực tiếp bóng đá tốt nhất Việt Nam hiện nay, chất lượng hình ảnh rõ nét và bình luận viên chuyên nghiệp đem lại giây phút giải trí cho người xem bóng đá. Bên cạnh đó, Xoilac TV cập nhật tin tức bóng đá nhanh chóng đầy đủ, kịp thời. Đội ngũ chuyên gia của trang web theo sát giải đấu, tổng hợp thông tin từ nguồn đáng tin cậy, mang đến cho người dùng cái nhìn tổng quan nhất về làng túc cầu trong nước và thế giới https://xoilactv.ink/
casibom: casibom guncel giris – casibom
casibom giris
Sunwin.prof là một nhà cái trực tuyến uy tín tại Việt Nam, nổi bật với các dịch vụ cá cược đa dạng. Người chơi có thể tham gia cá cược thể thao, game casino, và nhiều trò chơi khác. Giao diện nền tảng thân thiện và dễ sử dụng giúp người dùng dễ dàng tìm kiếm trò chơi yêu thích. Sunwin.prof cũng thường xuyên có khuyến mãi hấp dẫn, mang lại nhiều cơ hội thắng lớn cho người chơi. https://sunwin.prof/
Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me.
Your point of view caught my eye and was very interesting. Thanks. I have a question for you. https://accounts.binance.com/fr/register-person?ref=DB40ITMB
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me? https://accounts.binance.com/ph/register?ref=W0BCQMF1