EUR/USD eyes to regain 0.9800 amid fresh challenge to risk-of mood, yields, central bank in focus
|- EUR/USD consolidates the biggest daily loss in a fortnight, picks up bids of late.
- Headlines from China, a pause in the yields’ run-up near multi-year high triggered latest rebound.
- Buyers remain unconvinced as fears of recession, aggressive central bank actions stay on the table.
EUR/USD renews its intraday high around 0.9790 amid the fresh decline in the US dollar heading into Thursday’s European session. In doing so, the quote pares the previous day’s losses, the biggest in two weeks, amid an absence of major data/events.
China’s debate on reducing quarantine time for international travelers seemed to have triggered the US dollar’s latest weakness amid a likely sluggish session. With this, the US Dollar Index (DXY) reverses the Asian session gains and prints 0.12% loss on the day as it refreshes intraday low to 112.77 at the latest.
Even so, the S&P 500 Futures print mild losses while staying around 3,700 by the press time.
Previously, US 10-year Treasury yields refreshed a 14-year high above 4.0%, around 4.15% by the press time while its two-year counterpart stays strong near the highest level since 2007, up 0.30% intraday near 4.57% at the latest.
It should be noted that the fears of higher inflation and the resulted aggressive rate hikes from the major central banks that previously propelled the US Treasury yields and the US dollar.
Moving on, a light calendar and a sudden shift in the risk profit could probe the EUR/USD from declining further. However, the recovery remains doubtful unless the yields start deteriorating and the DXY also ease, which is less expected.
Technical analysis
Unless staying below the weekly support line, now resistance around 0.9830, EUR/USD stays directed towards an upward-sloping trend line support from September 28, close to 0.9675 at the latest.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.