Economy Forex News

EUR/USD trims losses and reaches session high near 1.1580

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  • The euro rises against a weaker dollar and returns to 1.1580.
  • Dollar retreats as US bond yield curve flattens.
  • EUR/USD remains negative, heading towards 1.1000 – Credit Suisse.

The euro is taking advantage of a slightly weaker dollar on Wednesday to regain lost ground. The EUR/USD pair has made a floor at the year-to-date lows at 1.1525 to appreciate about 0.4% on the day, reaching session highs near 1.1580 so far.

EUR/USD

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Dollar loses ground as U.S. yield curve flattens

On Wednesday, the dollar is trading lower against most of its major peers due to a flattening of the U.S. bond yield curve. The 10-year Treasury note yield declined on Tuesday to 1.57% from levels above 1.6%, while short-term yields rose. The yield on the 2-year Treasury note has risen to 0.35 percent, its highest level in 18 months.

In terms of macroeconomic indicators, the U.S Consumer Price Index confirms the inflationary trend in recent months. The consumer price index rose 0.4% in September, up from 0.3% in August, while the annual price index rose 5.4%.

These data cast doubt on Fed Powell’s theory of “temporary” high inflationary pressures, adding pressure on the US central bank to announce a tapering of QE in November.

EUR/USD remains bearish, targeting 1.1000 – Credit Suisse

However, Credit Suisse’s currency analysis team views the current euro rally as a mere correction. In the bigger picture, the pair remains head lower: “The EUR/USD pair seems to be probing the weekly Ichimoku cloud, but 1.1665 might be a limiting level. (…) Below 1.1495, the next support could be 1.1450 and projections of 1.1380.

Technical levels

OVERVIEW
Today’s Last Price 1.1576
Daily Rate 0.0046
Daily Rate % 0.40
Today’s Daily Open 1.153

TRENDS
20 Daily SMA 1.1652
50 Daily SMA 1.1732
100 Daily SMA 1.1842
SMA of 200 Daily 1.1942

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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