EUR/USD remains depressed near 1.1920 on firmer USD, German data eyed
- EUR/USD struggles to hold onto the gains in the Asian session.
- The Euro gains some ground on upbeat economic data.
- Uptick in US treasury yields underpins the demand in the US dollar.
The buying interest in the US dollar keeps EUR/USD edgy on Thursday morning Asian’s session. After testing the high of 1.2263 in late May, the Euro lost the battle against the greenback. It breached the coveted 1.1900 mark and tested the lows of 1.8477 in the week.
At the time of writing, EUR/USD is trading at 1.1924, down 0.01% for the day.
The US 10 year benchmark yields trade at 1.49% with gains of 0.34%. The US Dollar Index (DXY) follows the treasury yields and stands strong at 91.82. Mixed comments from Fed’s official on inflation and interest rates outlook affects the greenback movement.
Atlanta Fed President Raphael Bostic said he expected interest rates to rise in late 2022 with surging economic growth at 7% and inflation above the Fed’s 2% target this year. Both Bostic and Fed Governor Michelle Bowman believed recent price pressure may take longer than anticipated for them to fade.
Meantime, US Treasury Secretary Janet Yellen on Wednesday warned Congress about the risk of debt default and a probable new financial crisis. The comments weigh on the sentiment of the US dollar.
In addition to that, the US senators had reached a deal on the infrastructure spending bill and planned to discuss it with President Joe Biden today.
On the other hand, the shared currency gains were limited due to the attractive valuation of the USD. The upbeat domestic economic data holds the lower ground for the Euro.
The IHS Markit Eurozone Service PMI rose to 58.0 in June, well above the market forecast at 57.8. The Consumer Confidence Indicator gained 1.8 points, slightly higher than the market consensus at -3.0.
As for now, investors are glued to the release of a host of data in the US. Durable Goods Orders, Gross Domestic Product (GDP), and Initial Jobless Claim data. In the Eurozone, German IFO Business Climate data eyed to gauge the market sentiment.
EUR/USD additional levels