Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The EUR/USD pair’s current price is 1.0921 at the time of writing amid signals by ECB policymakers concerning additional interest-rate hikes in the horizon.
The EUR/USD pair is under mild selling pressure on Monday, easing from the 1.0970 multi-week high posted on Friday, to trade near the 1.0900 level.
Markets in the United States are closed on Monday due to the Juneteenth holiday. The EUR/USD corrects extreme overbought conditions, but remains on a bullish path.
The US Dollar entered a sell-off spiral following softer-than-anticipated United States (US) inflation-related figures and the Fed‘s pause and hawkish language. Financial markets turned optimistic amid speculation the US will avoid a recession. Stocks rallied, while the safe-haven Greenback came out of investors’ radar.
At the same time, the European Central Bank (ECB) hiked its benchmark interest rates while anticipating additional increases in the docket. The news was not a surprise but helped the Euro on its way up.
On Monday, ECB’s Member of the Executive Board Philip R. Lane said another hike in July seems appropriate, while September’s decision will depend on data. He sounded confident as he said inflation would come down fairly quickly to the central bank’s 2% target.
Meanwhile, another ECB Member of the Executive Board, Isabel Schnabel, expressed concerns about the central bank underestimating inflation, adding the path in raising interest rates should have been steeper.
The macroeconomic calendar has nothing relevant to offer for the rest of the day, while US markets will be closed amid the Juneteenth holiday, anticipating quiet consolidation across the Forex board.
