Euro holds gains in US Dollar weakness
Daily Currency Update
The Euro is holding on to the 1.12 level against the US Dollar heading into Thursday’s European session and as markets brace for the next Federal Open Market Committee (FOMC) meeting. The US Dollar index dropped 0.25% to test the 100.00 level on the DXY index. The downbeat US housing data and the concerns about the Fed's next rate hike play a significant role surrounding the weakness in the currency with the US treasury Bond yields also trading at a weekly low.The Euro remains firmer with talks slightly more proactive in terms of their rate hiking cycle compared to the US Federal Reserve. With the multi-year high inflation in the Eurozone, it’s worth noting that the US attracts more doubts than those from the Eurozone at this point, which keeps the EUR/USD buyers firmer with suggestions the Fed may pivot policies after July.
Key Movers
The preliminary readings for Eurozone’s Consumer Confidence for July will be printed today and will be watched closely. US Initial Jobless Claims and Existing Home Sales are lined up in the economic calendar. If the Eurozone readings print firmer the Euro could experience further gains in EUR/USD whilst the US Dollar portrays broader weakness. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn. A high reading is seen as positive for the Euro, while a low reading is seen as negative.Expected Ranges
- GBP/USD: 1.2905 - 1.2936 ▼
- GBP/EUR: 1.1512 - 1.1553 ▼
- GBP/AUD: 1.8916 - 1.9131 ▼
- EUR/USD: 1.1197 - 1.1226 ▲