|Day's Range||1.17 - 1.179|
|52 Week Range||1.1111 - 1.2558|
Eurasia Group Europe analyst Federico Santi says that a euro zone exit is not on the agenda, at least for the time being, for the next Italian government.
With the yen, loonie and euro on the back foot, the dollar is likely headed higher for now, says Ray Attrill of National Australia Bank.
The ICE U.S. Dollar Index (IFUS:DX-Y.NYB) , which tracks the greenback against six rivals, rose to 93.867, up from 93.563 late Tuesday in New York. On Tuesday, President Donald Trump told reporters he wasn’t really happy with the progress of U.S.-China trade talks, and hinted that his summit with North Korean leader Kim Jong Un may not go ahead as planned. In Turkey, the currency is hitting historic lows in the wake of troubling statements from President Recep Tayyip Erdogan.
The Euro bounced around during the Tuesday session, initially searching much higher, but pulling back from the 1.1825 handle. Since then, it looks like the buyers are starting to come back a little bit, so the question now is whether we are trying to form some type of short-term bottom?
Investing.com – The dollar moved off session lows as the euro reversed its earlier gains amid ongoing political uncertainty in Italy, while the pound resumed its downward trend adding to dollar strength.
The dollar struggled to stay near a five-month high on Tuesday as investors look ahead to the Fed minutes. The Federal Reserve releases the latest minutes from its monetary policy meeting on Wednesday. Investors will be looking closely for any sign of tightening monetary policy.
The EUR/USD bounced slightly on Tuesday but the trend for a lower exchange rate remains intact. U.S. yields edged lower, easing pressure on the currency pair despite a jump in the U.S. Philly Fed services index. U.S. chain store sales fell in the latest week, while the ECB is focused on Italy. The EUR/USD attempted to rebounded but ran into resistance near the 10-day moving average at 1.1841.
Euro-hopeful Bulgaria does not yet meet the criteria to adopt the single currency, the European Commission will say on Wednesday in an assessment of European Union countries that must one day switch to the euro. Unlike bigger and richer EU countries that still use their own currency, such as Sweden and Poland, Bulgaria, the EU's poorest member, is eager to join the euro zone and wants to begin the two-year waiting period in May or June. Apart from Britain, which will leave the EU next year, and Denmark, which has a permanent exemption from adopting the euro, all EU countries are legally obliged to join the single currency once they meet all the criteria.
Investing.com - The dollar pulled back from a five-month high against major rivals on Tuesday, as traders opted to take profits after the recent rally, while Forex traders focused on testimony to the UK Treasury Select Committee.
The market started off the week with a positive momentum bouncing higher from the 1.17 level which offered enough psychological support. The 1.18 level on the top is an important psychological resistance and market can witness some selling pressure from there.
The commodity-linked Aussie, Kiwi and Loonie were underpinned on Monday after President Trump’s top Treasury official said the trade war with China is “on hold,” a truce that removed a big risk from the market for now.
The U.S. dollar retraced its gains late Monday after having surged to its loftiest level since late last year, as investors read the most recent development between U.S. and China as evidence of easing trade animosities.
Investing.com – The dollar eased from fresh five month highs as gains on the back of abating trade war fears were offset by a recovery in the euro from multi-month lows.
The dollar was stead as trade tensions between the U.S. and China were put on hold. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.12% to 93.69 as of 11:30 AM ET (15:30 GMT). The trade war between the U.S. and China is “on hold” as the two work on a trade agreement, U.S. Treasury Secretary Steven Mnuchin said on Sunday.
The EUR/USD ran into support and bounced off session lows at yields moved lower. Recent developments in Italy is generating concern which has weighed on the currency pair. The Fed’s Bostic said that FOMC is close to its dual goals, while the Fed’s Chicago National activity index rose in line with expectations. The EUR/USD bounced near support near the December lows at 1.1725.
In the last few days, talks in Italy to form a government between the populist 5 Star Movement (led by Luigi di Maio) and the far-right Lega (led by Matteo Salvini) have intensified. A draft agreement that includes conceptual economic policies leaked earlier this week, prompting criticism from the European Union and a negative reaction in the bond market. Since the elections on March 4, different potential coalitions have come close to forming governments, and these talks could also still collapse.
Italy’s two largest antiestablishment parties are ready to present their prime minister candidate to President Sergio Mattarella on Monday, moving one step closer to forming a government that analysts fear could plunge the country into a sovereign debt crisis and threaten the future of the eurozone. On Sunday, the populist 5 Star Movement and far-right anti-immigrant League party agreed on the main members of their cabinet, including who they’d like to see as prime minister in their coalition government. Mattarella is expected to confirm the coalition, paving the way for a euroskeptic government to lead the eurozone’s third largest economy.
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to Friday’s close at 1.1773.
Weakness continued through the Friday’s session as the pair sliced through the 1.1775 level indicating further downward pressure in the market in coming sessions. The pair recently bounced higher but the traders are more interested in picking value in the greenback. On the weekly chart, it has broken below the bottom of a hammer from the previous week, which is an extremely negative sign and 1.15 level underneath is the hard support of this market. …Read MoreGBP/USD
Robust data in the United States has pushed yields higher as investors bet that the Federal Reserve will stay the course to raise rates three times this year.