EUR/USD rebounds modestly, closes in on 1.1800

1 week ago 5
EUR/USD looks to snap a four-day losing streak. US Dollar Index broke below 93.00 in the American session. Risk-positive market environment is making it difficult for USD to find demand.

After spending the majority of the day in a relatively tight range above 1.1750, the EUR/USD pair gained traction during the American trading hours and was last seen rising 0.15% on the day at 1.1796.

DXY reverses direction as Wall Street rally continues

In the absence of high-tier macroeconomic data releases and fundamental developments, the risk perception continues to impact the USD's market valuation. Earlier in the day, the US Dollar Index (DXY) reached its highest level since early April at 93.19 and didn't allow EUR/USD to stage a rebound.

With Wall Street's main indexes building on Tuesday's impressive upsurge and opening in the positive territory on Wednesday, the greenback lost its strength. Reflecting the renewed USD weakness, the DXY is down 0.1% on the day at 92.86. 

On Thursday, the European Central Bank (ECB) will announce its Interest Rate Decision and release the Monetary Policy Decision.

Previewing this event, "the ECB’s latest announcement – that purchases under the Pandemic Emergency Purchase Programme (PEPP) over the coming quarter will continue to be conducted at a significantly higher pace than during the first months of this year – reinforces our view that the ECB will remain highly accommodative for longer," said Lee Sue Ann, Economist at UOB Group.

European Central Bank Preview: Fresh forward guidance, old fears.

Technical levels to watch for

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Read Entire Article