After falling to its lowest point in a month at 1.0900, the euro-dollar is seeking to mount a technical corrective. The market’s more positive outlook in the European morning is assisting in containing losses, and risk perception may continue to direct movement up to the end of the week.
Due to resurgent concerns about a US banking catastrophe, investors are steering clear of risky assets. In spite of poor initial unemployment claims and production index statistics, the American dollar is currently outpacing the euro.
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Watch out for the next moves of the ECB
Following policymaker Joachim Nagel’s denial of speculations that the ECB would likely increase interest rates twice more in July and September, investors will pay close attention to the statements made by ECB officials. The euro has had trouble gaining traction thus far.
The consumer index from the University of Michigan is expected to be released soon. Safe-haven assets may return to the markets if the survey shows that banking issues have considerably impacted consumer confidence, which would prevent the euro dollar from making any gains in the final trading session of the week.
An eye to the graphs…
The psychological threshold of 1.0900 continues to be perilously close for the Euro-dollar. The outcome of today’s session will be essential for the gearbox’s short-term prospects, as a critical closure might draw in additional bears and pave the way for a swift down to 1.0870 and then to the crucial level of 1.0800.
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