EUR/USD unable to reclaim 1.1200, Euro consolidates losses across the board
- Euro the worst performer among majors so far weakened by Draghi and EZ data.
- US Dollar post mixed results, gains support from a rebound in US yields.
The EUR/USD pair bottomed at 1.1180 earlier today, the lowest level in two weeks. The recovery was capped by 1.1210 and as of writing trades at 1.1190. Over the last hours, the pair has been consolidating daily losses, moving in the 1.1180/1.1210 range.
The Euro was unable to hold on top of 1.1200 showing that still faces bearish pressure. The correction of the US dollar helped EUR/USD remain above 1.1180. The greenback weakened on the back of an improvement in risk appetite after Trump said it will meet Xi but the decline was limited by the bounce to the upside in US yields.
The common currency tumbled today after European Central Bank President Draghi hinted at more stimulus sending German yields to record lows. Data from the Eurozone came in below expectation adding to growth concerns and weighed on the Euro.
Market attention turns now the FOMC meeting. Tomorrow the central bank will release it statement. No change in rates is except but analysts will look for clues about a potential rate cut in July. The shift in monetary expectations from the US boosted EUR/USD at the beginning of the months. The pair peak near 1.1350 and turned again to the downside, erasing most of the recent rally as ECB expectations also moved to the dovish side.
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