OctaFX | OctaFX Forex Broker
Open trading account
Back

EUR/USD extends daily rally to fresh multi-week highs above 1.1940

  • EUR/USD continues to push higher in the American trading hours.
  • US Dollar Index fell below 92.00 following an earlier rebound.
  • Core CPI in US edged higher to 1.6% in March.

After spending the first half of the day in a relatively tight range below 1.1900, the EUR/USD pair gained traction during the American session and touched its highest level in three weeks at 1.1945. As of writing, the pair was up 0.25% on the day at 1.1940.

DXY slumps below 92.00

The USD's market valuation remains the primary driver of EUR/USD's movements. Earlier in the day, the more-than-1% increase witnessed in the 10-year US Treasury bond yield helped the greenback outperform its rivals and the US Dollar Index (DXY) advanced to a daily high of 92.32.

However, the monthly report published by the US Bureau of Labor Statistics showed that the Core Consumer Price Index (CPI) rose to 1.6% on a yearly basis in March and triggered a USD selloff. Currently, the DXY is down 0.17% on the day at 91.92 and remains on track to close the second straight day in the negative territory.

On the other hand, the Eurozone ZEW Economic Sentiment fell to 66.3 in April from 74 and missed the market expectation of 73.2. Similarly, the German ZEW Economic Sentiment Index declined to 70.7 from 76.6. Nevertheless, the negative impact of these disappointing data on the shared currency remained short-lived.

On Wednesday, Eurostat will release February Industrial Production data for the euro area. Later in the day, FOMC Chairman Jerome Powell and New York Fed President John Williams will be delivering speeches.

Technical levels to watch for

 

Fed's Harker: Fed policy is going to hold steady for now

Philadelphia Fed President Patrick Harker said on Tuesday that he expects the Gross Domestic Product to grow by around 5-6% in 2021, as reported by Re
Read more Previous

Fed's Harker: Fed is not anticipating inflation running out of control

Philadelphia Fed President Patrick Harker noted on Tuesday that the economic recovery in the US is still "a little fragile," as reported by Reuters. A
Read more Next
Start livechat