EUR/USD is off its highs, but it remains steady above 1.1850.
The T-yields comeback is outweighed by the risk-on mood-driven DXY weakening.
In its strategic review, the ECB establishes a symmetrical inflation aim.
The EUR/USD is halting its two-day comeback as we approach the weekly close on Friday, as the US dollar receives a little boost from the London fix.
Despite the setback, the main currency pair maintains a large portion of its intraday gains by remaining over 1.1850. The spot is presently at 1.1862, up 0.16 percent on the day, after hitting a two-day high of 1.1875 in the previous hour.
As the bulls remain stubborn to the steady recovery in US Treasury yields, the cheerful market atmosphere continues to undercut the US dollar’s safe-haven demand, adding support to the major.
After the European Central Bank (ECB) established a symmetric 2 percent inflation objective in its strategic review meeting on Thursday, the major recovered from three-month lows of 1.1782.
Meanwhile, the Fed’s Monetary Policy Report highlighted that the inflation outlook’s near-term upside risks had grown. The greenback, however, exhibited little reaction to the report, as it remained vulnerable to risk sentiment. The daily low of 1.1825 provides some support. Only the new July trough of 1.1781 comes after it. The lines to watch farther down are 1.1740 and 1.1717. The weekly high of 1.1875 provides some resistance. According to FXStreet’s Senior Analyst Yohay Elam, 1.1895 is the monthly high, followed by 1.1950 and 1.1975./n
