EUR/USD:FUNDAMENTAL NEWS+TECHNICAL ANALYSIS | LONG SETUP 🔔

4 mai 2022

EUR/USD Forecast: Corrective advance could continue in the near-term

EUR/USD Current Price: 1.0566
A better market mood and caution ahead of the Federal Reserve decision weigh the dollar.
The EU Producer Price index soared to 36.8% YoY in March, signaling persistent price pressures.
EUR/USD trades near the upper end of its latest consolidative range, still at risk of reaching lower lows.

The EUR/USD pair is up on Tuesday, currently trading at around 1.0565, as a better market mood constrained demand for the American currency, which anyway holds on to substantial yearly gains against most major rivals. Investors are becoming cautious ahead of the US Federal Reserve monetary policy decision, to be out on Wednesday.

The improved sentiment, however, is likely to be short-lived. Spiraling inflation, tensions in Europe amid the Russian war on Ukraine and a rising number of coronavirus contagions not only in China anticipate a long road ahead towards economic stability. At the same time, central banks are draining markets from easy money meant to provide support in the early stages of the pandemic.


Asian and European indexes trade in the green, reflecting a better perception of risk, while government bond yields give up some of their Monday’s gains. The yield on the 10-year US Treasury note peaked at 3%, now hovering around 2.95%, while the German note yielded over 1% for the first time since 2015.

Data wise, the EU released the March Producer Price Index, which jumped to 36.8% YoY from 31.5% in the previous month, indicating that price pressures are far from over. The American session has nothing relevant to offer, as the US will release March Factory Orders and JOLTS Job Openings for the same month. European Central Bank President Christine Lagarde will be on the wires.

5 mai 2022

Transaction en cours