The Euro is finally taking a breather in today’s Asian trading session, recording it’s first gains against the US dollar in 3 days after being severely punished on that back of a fairly upbeat assessment of the US economy where higher inflation and interest rate expectations dominated the news.
It should be noted that the Euro is not the only casualty of the US dollar rally over the last 2 days with the pound and the Aussie dollar among other currencies taking a huge hit and the US dollar index, while retreating from a 2 month high has made its biggest gains since 2020 which was at the height of the Coronavirus pandemic.
There is little movement expected in the EURO/USD in today’s trading session as the currency pair consolidates due to the lack of economic news. The release of the Producer Price Index (PPI) from Germany is unlikely to cause any volatility but may shed some light of the state of business conditions in Europe’s largest economy.
The Euro hit a critical support level at around $1.1900 which it reached a little more than 2 months ago where it gained major support and made a positive bounce to end yesterday’s trading session.
For now there seems a fair amount of buying interest around the $1.1900 and this level is expected to hold up today and there may be even some type of relief rally that could see the Euro end the day in positive territory around the $1.1950 mark.