5/25/2021 6:42:27 AM GMT | By FXStreet Insights Team
EUR/USD is trading above 1.22, benefiting from dollar weakness and Europe s reopening. Is new energy from a long weekend enough for a breakout? Euro eyes a jump above tough resistance at 1.2245, Yohay Elam, an Analyst at FXStreet, reports.
Europe s improving covid statistics and upbeat business sentiment may keep its bid
“As long as the Fed remains calm, the printing presses continue working – the bank buys $120 billion in bonds every month – and weakening the dollar. An interest rate hike is still beyond the horizon. Chicago Fed President Charles Evans and Randal Quarles are scheduled to speak later in the day.”
IFO Business Climate is set to advance from 96.8 points reported in April to higher levels.
Coronavirus statistics continue falling across the old continent, allowing countries to reopen to travel – except flying above Belarus. The return of British tourists to Spain and Portugal serves as a sign of normality. EU countries have vaccinated nearly 40% of their populations with at least one dose. While the US leads with almost 50% receiving one jab, the pace of inoculations is slowing.
All in all, EUR/USD has reasons to be cheerful.
EUR/USD Technical Analysis
Euro/dollar is making its fourth attempt to challenge 1.2245, as seen on the four-hour chart. The currency pair is benefiting from upside momentum and has evaded a drop below the 50 Simple Moving Average. With the Relative Strength Index (RSI) well outside overbought conditions, there is more room to rise.
XE Market Analysis: North America - May 11, 2021
The dollar has gained for a second day, which has been a rare feat over the last five weeks. This has come amid wider recognition that the disappointing headline readings of the April U.S. jobs report was down to temporary, supply-side issues although sufficient to maintain the Fed s prevailing commitment to ZIRP and with market participants turning attention to tomorrow s U.S. inflation data. Fed speakers yesterday talked up prospects for the labour market while mostly still maintaining dovish signalling. Chicago Fed President Charles Evans, who is an arch dove, argued that the central bank will still need to remain accommodative until we really get nervous that inflation is just in excess of averaging 2% over time. At the same time, the surge in commodity prices, which has lifted many broad commodity indices to five-year-plus highs, suggests that inflation risks are running above what can ben accounted for by the prevailing y/
XE Market Analysis: Europe - May 11, 2021
The dollar has gained for a second day, which has been a rare feat over the last five weeks. This has come amid wider recognition that the disappointing headline readings of the April U.S. jobs report was down to temporary, supply-side issues although sufficient to maintain the Fed s prevailing commitment to ZIRP and with market participants turning attention to tomorrow s U.S. inflation data. Fed speakers yesterday talked up prospects for the labour market while mostly still maintaining dovish signalling. Chicago Fed President Charles Evans, who is an arch dove, argued that the central bank will still need to remain accommodative until we really get nervous that inflation is just in excess of averaging 2% over time. At the same time, the surge in commodity prices, which has lifted many broad commodity indices to five-year-plus highs, suggests that inflation risks are running above what can ben accounted for by the prevailing y/y base