EUR/USD marches towards 1.0600 as investors shrug off US inflation fears, Germany ZEW Survey eyed

  • EUR/USD is advancing towards 1.0600 on a rebound in positive market sentiment.
  • Investors are seeing a mild underperformance from the Germany ZEW Survey.
  • This week, the mega event will be the release of the US inflation.

The EUR/USD pair is oscillating in a narrow range of 1.0570-1.0580 after a marginal upside move from 1.0553 in the Asian session. The pair is expected to advance further as improvement in the risk appetite of investors has underpinned the risk-sensitive currencies.

The US dollar index (DXY) is struggling to sustain above 103.60 as investors have shrugged off the fears of the US inflation release on Wednesday. Investors are seeing rising odds of a 75 basis point (bps) rate hike by the Federal Reserve (Fed) despite the denial by Fed chair Jerome Powell in the last week’s monetary policy meeting. The expectations of a 75 bps rate hike have been strengthened by the upbeat Nonfarm Payrolls (NFP). Better-than-expected NFPs have signaled a tight labor market, which may demand an elevation in the Wage Price Index ahead. The inflation figure is seen at 8.1% lower than the prior print of 8.5%, which indicates that quantitative curbs by the Fed have started justifying their job.

On the euro front, investors are eyeing the release of the Germany ZEW Survey-Economic Sentiment that finds deviation between the optimistic and pessimistic institutional investors. A negative release is considered negative for the shared currency. The ZEW survey is seen at -42.5 against the prior print of -41.

EUR/USD

Overview
Today last price 1.0575
Today Daily Change 0.0010
Today Daily Change % 0.09
Today daily open 1.0565

 

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