The Euro registered minuscule losses against the US Dollar early during Monday’s North American session, as some European Central Bank (ECB) officials were dovish, laying the ground to cut rates. That and a scarce economic calendar in the Eurozone keep traders leaning on last week’s speeches and the important US inflation report on Tuesday. The EUR/USD trades at 1.0763, down 0.14%.
Last week, De Cos seemed confident that the 2% mid-term target would be achieved, “taking into account the associated risks and, second, the rate path that is compatible with reaching our symmetric target.” Last Friday, the ECB’s Chief Economist Lane said that “incoming data suggests that the process of disinflation in the near-term, in fact, may run faster,” which implies the ECB could pivot based on recently released data.
Over the weekend, comments by ECB’s Governing Council Panetta fueled speculation that Lagarde and Co. might cut rates earlier than the US Federal Reserve (Fed), opening the door for further EUR/USD downside. The market sees a 60% probability of a 25 bp rate cut in April and 125 bp of total easing this year.
Across the pond, Fed officials struck a more balanced tone, with Dallas Fed President Lorie Logan saying the risks are more balanced and there was no urgency on rate cuts. Her colleague Atlanta’s Fed President Raphael Bostic dialed back his 2023 Q4’s dovish rhetoric and said he’s still “laser-focused” on inflation.
On Tuesday, the EU's economic calendar will feature the February ZEW Economic Sentiment Index for Germany and the bloc. On the US, February’s Consumer Price Index (CPI) figures could move the needle in the EUR/USD pair. Market players expect a dip in CPI from 3.4% to 2.9% YoY and core CPI on an annual basis to edge lower from 3.9% to 3.7%.
The EUR/USD is downward biased as depicted by the daily chart. The pair pierced the 100-day Moving Average (DMA) at 1.0789 and reached 1.0800 but slipped past those two levels extending its losses toward the 1.0760s area. If broken, further downside is seen below the February 6 low of 1.0722, ahead of the 1.0700 mark. On the flip side, if buyers lift the spot price above 1.0789, that could open the door to challenge 1.0800.
© 2011-2024 Top Markets Solutions Ltd
This website is operated by Top Markets Solutions Ltd which is registered with the Department of Registrar of Companies and Intellectual Property of the Companies of the Republic of Cyprus as a private limited company with registration number HE272810 and is authorized by the Cyprus Securities and Exchange Commission ("CySEC") to act as a licensed Cyprus Investment Firm ("CIF") with license number 158/11. Top Markets Solutions Ltd operates in accordance with Markets in Financial Instruments Directive (MiFID).
In accordance with CySEC Circular C108, please be informed that the previous name of Top Markets Solutions Ltd was TeleTrade-DJ International Consulting Ltd.
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Top Markets Solutions Ltd ("the Company") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall the Company have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
The Company cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
The Company currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime. The Company does not provide its services to residents or nationals of the USA.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64.90% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade Europe strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.