The EURUSD is consolidating in the short term after rising to a one-month high last week thanks to Jerome Powell's dovish tone.
The dollar fell back this week, a victim of Jerome Powell's damning announcements that put off the prospect of an interest rate hike and weaker-than-expected growth in U.S. quarterly GDP.
The EURUSD continues to consolidate as it awaits the outcome of the FOMC monetary policy meeting on Wednesday night.
The EURUSD continues to trade flat at a bearish bias on Friday despite the ECB's dovish tone on Thursday which should have alleviated the selling pressure on the pair.
The European Central Bank pledged on Thursday to keep rates low for an extended period and to support the Eurozone economy until inflation stabilizes at 2% on a sustainable basis.
EURUSD is expected to remain stable ahead of tomorrow's ECB July meeting with the increasing risk that the ECB will adopt an accommodative tone. This should limit the euro dollar's rise ahead of the meeting.
The EURUSD is at a crossroads moving between a medium-term bullish oblique and the bearish oblique of a short-term wedge.
U.S. consumers faced a third straight monthly increase in prices in June, the latest evidence that the rapidly reopening economy is fuelling pent-up spending on goods and services that, in many cases, remain scarce.
The EURUSD has been trying to rebound since Friday after returning to test a major support oblique last Thursday following the economic fears posed by the spread of the Delta variant.
In a major policy review presented Thursday, the European Central Bank decided to revise its inflation target and allow consumer prices to rise above the limits when deemed necessary.
The U.S. economy created more jobs than expected in June but the job market is far from having fully recovered from the pandemic, the Labour Department announced Friday, reporting a slightly higher unemployment rate.
The EURUSD has been trying to recover since Tuesday after falling to a more than two-month low below $1.19 on Monday following the Fed's change in tone last week.
The dollar climbed Wednesday against the euro after the U.S. Central Bank (Fed) revised upward its inflation forecast for 2021 and announced its intention to raise rates twice in 2023.
The European Central Bank is keeping its main economic support package to fight the pandemic running at full speed, even as the economy shows signs of recovery thanks to fewer cases of the virus and fewer restrictions on activity in the 19 countries that use the euro currency.
The EURUSD is trading in the balance as it awaits the ECB on Thursday.
The dollar fell against the euro Friday, weighed down by a number of U.S. jobless claims that disappointed investors for the second month in a row, a sign that the economic recovery is not yet established.
The EURUSD is moving without a clear direction in the short term, hovering in a range between 1.2250 and 1.2160 after having climbed back to its February high in mid-May.
The EURUSD has been stalling last week after climbing back to its February high of around 1.2243.
The dollar recovered very slightly Friday against the euro, which remained at a high range, after cautious comments from European Central Bank (ECB) President Christine Lagarde and good U.S. indicators.
The EUR/USD climbed to a nearly three-month high this morning at 1.2240 following disappointing US housing starts figures.