Euro tries to recoup from low levels amid calm trading

Economies.com
2023-05-29 08:27AM UTC

Euro rose in European trade amid attempts to recoup from two-month lows against dollar, and on track for the first profit in five days amid calm trading due to a holiday in European and US markets. 

 

The gains come amid improving risk appetite after US President Joe Biden and top Congressional Republican Kevin McCarthy reached a deal to end the debt ceiling crisis. 

 

Now investors await crucial European inflation data in May, which will provide important clues on the chances of a 0.25% rate hike in June.

 

EUR/USD rose 0.25% to 1.0743, with a session-low at 1.0715, after losing 0.1%5 on Friday, the fourth loss in a row, plumbing two-month lows at 1.0702 following strong US consumer spending data. 

 

Euro lost 0.8% last week against dollar, the third weekly loss in a row, and the longest such streak of weekly losses this year on concerns about a widening policy gap between the US and Europe. 

 

Risk Appetite 

 

US President Joe Biden and Republican leaders in Congress reached a settlement in the weekend to raise the US debt ceiling, avoiding a catastrophic debt default. 

 

Such a deal boosted market sentiment, but Congress must approve the deal quickly. 

 

European Rates

 

Even as the European Central Bank asserted its commitment to a monetary policy path, there remains doubts about upcoming rate hikes in Europe with investors divided on the chances of such hikes in June and July. 

 

In order to clinch more clues on the future of European interest rates, investors now await important clues on European inflation in May. 

 

The Dollar

 

The dollar index fell 0.2% today, the first such decline in six sessions off two-month highs at 104.42 on profit-taking against a basket of major rivals. 

 

Dollar lost its safe haven appeal after the US debt ceiling crisis was seemingly solved this weekend. 

Forex and Currency News

Forex News

Forex

Dollar gives up one-week high ahead of Waller's remarks
2024-05-24 12:04PM UTC
Dollar fell in European trade on Friday against a basket of major rivals, giving up one-week highs ...
GBP/USD news

Forex

Sterling backs off two-month high after grim data
2024-05-24 07:44AM UTC
Sterling fell in European trade on Friday against a basket of major rivals, extending losses for ...
USD/JPY news

Forex

Yen hovers near three-week low under supervision of BOJ
2024-05-24 04:05AM UTC
Yen declined in Asian trade on Friday against a basket of major rivals, extending losses for the ...

Forex Technical Analysis

GBP USD Analysis

Forex

The GBPUSD forecast update 24-05-2024
2024-05-24 09:12AM UTC
GBPUSD Price Analysis Expected Scenario The GBPUSD price trades positively to attempt to ...
EUR USD Analysis

Forex

The EURUSD price forecast update - 24-05-2024
2024-05-24 09:12AM UTC
EURUSD Price Analysis Expected Scenario The EURUSD price shows some bullish bias to test ...
Technical Analysis

Forex

The GBPCAD continues to rise – Forecast today – 24-5-2024
2024-05-24 09:01AM UTC
GBPCAD Price Analysis Expected Scenario The GBPCAD price repeated the positive closings ...