Investing.com - Financial Markets Worldwide
🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

EUR/USD Drops Below 1.1000 as Hawkish Fed Bets Boost U.S. Dollar

ByAlex Boltyan
Published 04/17/2023, 04:23 PM
Updated 07/09/2023, 06:32 AM
EUR/USD
-
DXY
-

The EUR/USD pair retreated for a second straight day on Monday, sliding below the crucial 1.1000 level. Despite the lack of significant data releases, the US dollar remains strong against its competitors, thanks to bullish bets on the Federal Reserve.

At the time of writing, the EUR/USD pair is trading at 1.0923, 0.63% below its opening price, while the DXY Index is trading at the 102.10 area, recording a 0.54% daily gain.

Fed officials have been hitting the wires, boosting hawkish expectations and US yields. The WIRP tool shows that the odds of a 25 bp hike in May rose to nearly 90% from around 70% a week ago. At the same time, small odds of another 25 bp hike in June are back on the table. Against this backdrop, the 10-year note yield rose to 3.60%, the highest level since late March, while the 2-year rate climbed to 4.20%.

Caution among investors is also helping the greenback, pushing Wall Street indexes into the red at the beginning of the week. However, equities managed to rebound and closed on positive ground. By the closing bell, the S&P 500 gained 0.33%, the Dow Jones Industrial Average rose 0.30% and the Nasdaq Composite 0.28%.

 EURUSD Daily Chart
From a technical perspective, despite recent correction from one-year highs, the shared currency maintains its bullish bias on the daily chart. Indicators have turned lower but remain above their midlines while the price hovers above its main moving averages.

The following support level is seen at the 20-day SMA at 1.0890, followed by the last week’s lows at the 1.0830 area. On the other hand, if the bulls regain momentum, the following resistance levels could be found at 1.1000 and 1.1030 ahead of the one-year peak of 1.1075.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.