EUR/USD probes session tops near 1.2350, EU Summit, tariffs eyed
- The pair is creeping higher after testing 1.2290 on Thursday.
- USD broadly offered following US sanctions on China.
- EU Summit, tariffs, US Durable Goods Orders all in the limelight today.
The increasing selling pressure hitting the greenback is now motivating EUR/USD to advance to the upper end of the daily range in the 1.2345/50 band ahead of the opening bell in Euroland.
EUR/USD focused on EU Summit, risk trends
The pair has reverted yesterday’s pullback and is now trading back to levels above 1.2300 the figure in a context of a generalized selling bias towards the greenback.
In fact, the buck has been suffering the ‘dovish hike’ from the Federal Reserve at its meeting on Wednesday, where the Committee reaffirmed its gradual rate path and the prospects for three rate hikes this year.
Adding to USD-weakness, President Trump announced tariffs on US imports from China worth $60 billion, sparking a wave of buying pressure around the safe haven JPY, dragging USD/JPY to fresh yearly lows and putting the buck under extra pressure.
Looking ahead, the EU Summit is expected to grab some attention (not a market mover however) in an otherwise tariffs-driven sentiment.
Across the pond, US Durable Goods Orders for the month of February will be the sole release along with speeches by Atlanta Fed R.Bostic (voter, centrist) and Minneapolis Fed N.Kashkari (non voter, dovish).
EUR/USD levels to watch
At the moment, the pair is gaining 0.37% at 1.2348 and a break above 1.2388 (high Mar.22) would aim for 1.2414 (high Mar.14) and then 1.2448 (high Mar.8). On the flip side, immediate contention emerges at 1.2241 (low Mar.21) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).