FXStreet The EUR/USD remains in correction mode, although with the release of the final CPI reading for the Eurozone is the 1,11.
EUR/USD: Is back to the Status as a safe haven?
After the new High was formed at 1.1122, pulled back the EUR/USD easily, while the U.S. Dollar recovered against its major rivals as US bond yields made a correction attempt. The US Dollar Index, which represents the strength of the USD vs. its 6 most important rivals, is back in 98,00, after the before the 6-month low at 97,76 was formed.
• US Dollar continues to fall with Trump scandal
The better-than-expected CPI reading from the Eurozone gave the Euro a new pulse, and so the EUR/USD could rise in the direction of 1,1100. In addition, the common currency seems to benefit from the safe-haven demand, while political uncertainty in the United States increases the concerns to President Trump. The political risks in Europe have decreased with the Macron victory in the French presidential elections.
Add to this the divergence in monetary policy between the Fed and the ECB, as with the weaker US fundamental data and the possibility of a Fed rate hike in June has decreased. In Europe, however, the economic recovery momentum, and the ECB is to reach its inflation target.
The developments around Trump and the USD dynamics are today the most important role for the development of play, as it is from the USA no important economic data .
• EUR/USD can the 1,1300 test — Commerzbank
• EUR/USD: the Expansion of the movement to 1,12 is possible — UOB
EUR/USD technical levels
Jim Langlands of FXCharts.com says: «If the 1,1100 is overcome, is much needed in order to achieve the 1,1200/10 and, in addition, there may be a motion to the November Spike High of 1,1300. On the other hand, different Fibo support of the rise from the recent 1,0838 Deep.»
** FXStreet News Editorial, FXStreet**