EUR/USD holds above 1.12 ahead of Lagarde’s speech
- 26th June 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY, FOREX MARKET ANALYSIS
- EUR/USD has recovered from overnight lows below 1.12.
- Asian equities track Wall Street higher and keep the US dollar under pressure.
- EU-US trade tensions are likely to escalate, according to an American think tank.
- ECB’s Lagarde is scheduled to speak at 07:00 GMT.
EUR/USD’s two-day decline has stalled with the bid tone around the US dollar weakening amidst signs of risk reset in the Asian equities.
The pair is currently trading at 1.1224, representing marginal gains on the day, having printed a low of 1.1190 during Wednesday’s US trading hours.
Major Asian indices like Nikkei and S&P/ASX 200 are reporting gains following the overnight rally on Wall Street. The US stocks rose the Federal Reserve and other regulators announced that they are planning to remove some limit’s on banks’ ability to make investments in hedge funds and similar ventures.
While the uptick in the equities is currently boding well for the single currency, traders should note that coronavirus scare and trade tensions that fueled a decline from 1.1326 to 1.1190 earlier this week are still lingering.
According to Stratfor, an American geopolitical intelligence platform, the US-EU trade war continues to brew and could see Brussels and Washington move forward with more tariffs through the rest of the year. In addition, the number of coronavirus cases in the US and other parts of the world are rising. As such, a sudden reversal lower in equities and stronger rally in the US dollar cannot be ruled out.
The pair is likely to continue taking cues from the broader market sentiment on Friday. The European Central Bank President Lagarde, during her speech at 07:00 GMT, will likely reiterate willingness to provide additional stimulus and stress the need for more effort on the fiscal front. In the US session, the focus would shift to Core Personal Consumption Expenditure – Price Index (MoM) (May). The data will be released at 12:30 GMT.
|Today last price||1.1224|
|Today Daily Change||0.0006|
|Today Daily Change %||0.05|
|Today daily open||1.1218|
|Previous Daily High||1.126|
|Previous Daily Low||1.1191|
|Previous Weekly High||1.1353|
|Previous Weekly Low||1.1168|
|Previous Monthly High||1.1145|
|Previous Monthly Low||1.0767|
|Daily Fibonacci 38.2%||1.1217|
|Daily Fibonacci 61.8%||1.1233|
|Daily Pivot Point S1||1.1185|
|Daily Pivot Point S2||1.1153|
|Daily Pivot Point S3||1.1116|
|Daily Pivot Point R1||1.1255|
|Daily Pivot Point R2||1.1292|
|Daily Pivot Point R3||1.1324|