EUR/USD: The pair in consolidation mode but the 1.0600 remains under challenge

Vasilis Tsaprounis Independent Analyst

The single European currency is currently defending the level of 1,06 but has not managed to move enough far away from it.

The exchange rate remains for a third day in a row in a narrow range between the 1, 06 - 1,0650 levels as the US currency's strong momentum fueled by hot US inflation last week is on pause.

Yesterday's agenda did not provide any surprises and the main interest for now is concentrated in Middle East developments as the possible response of Israel to Iran's attack remains on the table.

Heightened geopolitical concerns keep risk aversion in play which could further strengthen the US currency which is well known that traditionally function as a safe haven currency.

However, for now there is a calm as a big part of western world's diplomacy is trying to pressure Israel to show restraint in order to avoid a more general escalation with unpredictable consequences for stability and the world economy.

Today's agenda includes consumer inflation in the eurozone and the President's Lagarde speech. No major surprise is expected as it would be difficult for President Lagarde to change her rhetoric in just a few days.

The overall picture of the market remains the same with the US dollar maintaining a slight advantage for now mainly due to the prospect of a reduction in key interest rates by Ecb earlier than Fed.

However my thought to buy the Euro maybe above the 1,05 level remains on the table as I believe Euro's reactionary behaviors will come back into play.

Author

Vasilis Tsaprounis

Independent Analyst

Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.

EUR/USD holds losses below 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot below 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand and reports that ECB President Lagarde will step down before the end of her term. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.