EUR/USD Sees Modest Gain Despite Fed Remarks, German Inflation in Focus
EUR/USD experienced a slight uptick despite recent comments from Federal Reserve officials echoing Chair Powell's stance, with attention now turning to German inflation data.
NEWS
2/9/20241 min read
EUR/USD Sees Modest Gain Despite Fed Remarks, German Inflation in Focus
EUR/USD experienced a slight uptick despite recent comments from Federal Reserve officials echoing Chair Powell's stance, with attention now turning to German inflation data.
Key Points to Note:
- Despite the recent slide inspired by the Fed's remarks, EUR/USD remains within its established downtrend and trading range.
- The Euro is gradually rebounding within this range, supported by ongoing commentary from European Central Bank (ECB) speakers.
- Fed Chair Jerome Powell's indication that the Fed will hold off on rate cuts in March boosted the US Dollar against other major currencies.
- Additional remarks from Fed officials, including Loretta Mester and Neel Kashkari, have reinforced Powell's stance, suggesting a future rate cut but not in the immediate future.
- Similarly, ECB representatives are echoing a cautious approach, with Croatia's central bank governor Boris Vujcic highlighting the importance of waiting for clear signs of inflation stabilization before considering rate adjustments.
- German inflation data is expected to provide further insight into the Eurozone's economic health, particularly amid ongoing challenges in the region's powerhouse economy.
- Despite the Dollar's recent strength, EUR/USD has maintained its downtrend and trading range, with support at 1.07427 and potential psychological support at 1.07.
- Bulls may target the 200-day moving average at 1.08298, signaling a potential shift in momentum towards the range top at 1.08478.