EUR/USD remains firm ahead of ECB’s Lagarde speech, Fed Minutes


  • EUR/USD holds positive ground near 1.0860 in Tuesday’s early European session on Monday. 
  • The markets expect the Fed's policy rate on hold until September.
  • ECB’s Schnabel said policymakers should look very carefully at the data as there is a risk of easing prematurely. 

The EUR/USD pair trades on a stronger note around 1.0860 during the early European trading hours on Tuesday. Investors will focus on Fedspeaker amid the absence of key US data releases. On Wednesday, European Central Bank (ECB) President Christine Lagarde's speech and the minutes from the recent FOMC meeting will take center stage. 

The Federal Reserve (Fed) officials are confident to say inflation is heading to the 2% target after the US inflation report last week. Fed Vice Chair Philip Jefferson said on Monday that it’s premature to tell whether the recent slowdown in the disinflationary process will be long-lasting, highlighting that he will be carefully assessing incoming economic data and the outlook. Meanwhile, Atlanta Fed, Fed Vice Chair Michael Barr stated that disappointing first-quarter inflation data did not provide the Fed with the increased confidence to support easing monetary policy.” 

The US central bank is expected to hold the rate steady at its June meeting. Traders are pricing in a 76% chance of a rate cut from the Fed by 25 basis points (bps) in September and two cuts by the end of the year, according to the CME FedWatch Tool. 

Across the pond, the European Central Bank (ECB) is anticipated to lower its borrowing costs in the June meeting. The ECB board member Isabel Schnabel said the central bank may cut the rate in June, but warned about further cuts in borrowing costs given uncertainty over the outlook. Analysts believe the monetary policy divergence between the ECB and Fed might weigh on the Euro (EUR) and create a headwind for the EUR/USD pair. 

EUR/USD

Overview
Today last price 1.086
Today Daily Change 0.0003
Today Daily Change % 0.03
Today daily open 1.0857
 
Trends
Daily SMA20 1.0766
Daily SMA50 1.0782
Daily SMA100 1.0818
Daily SMA200 1.0789
 
Levels
Previous Daily High 1.0884
Previous Daily Low 1.0854
Previous Weekly High 1.0895
Previous Weekly Low 1.0766
Previous Monthly High 1.0885
Previous Monthly Low 1.0601
Daily Fibonacci 38.2% 1.0866
Daily Fibonacci 61.8% 1.0873
Daily Pivot Point S1 1.0846
Daily Pivot Point S2 1.0835
Daily Pivot Point S3 1.0815
Daily Pivot Point R1 1.0876
Daily Pivot Point R2 1.0895
Daily Pivot Point R3 1.0906

 

 

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