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The euro is dragging its feet to start the week

EUR/USD is down 0.4% to hit a session low of 1.1010 as the euro nearly erased last week’s rally, which was initially based on hopes of peace here .

There are some modest expiries taking place today at 1.1000-10 which could be a pull factor for the price action, but for now the sellers are also back in control in the near term. on a push below the 200 hourly moving average (blue line) @ 1.1042 .

Since the early March rally towards 1.0800, the Euro has found itself in a series of higher highs and lower lows:

The euro is dragging its feet to start the week

The pattern is not exactly well defined in my opinion and I would say that the pair is still facing general turmoil as a whole.

It remains to be seen how buyers will want to work with this given the deteriorating economic backdrop in Europe and the fact that the ECB remains rather numb in its stance towards a tighter policy against inflation.

Meanwhile, the US also faces a gradual slowing/worsening outlook, but at least the Fed remains adamant that it can stick to a tighter policy trajectory. The caveat, however, is that much of this has already been priced in by the market and any Fed price reversal of the rate hike will be a significant headwind for the dollar in general.

The push and pull could see the pair range between 1.0900 and near 1.1200 for now.

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