- EUR/USD is oscillating in a 7-pip range after a mild rebound.
- The greenback bulls are focusing on the release of the Michigan CSI.
- Fed Powell has unexpectedly added an alternative of two more jumbo rate hikes this year.
The EUR/USD is displaying a lusterless performance in the Asian session. The pair is oscillating in a tad lower range of 1.0391-1.0398 despite a bit healthy fall in the US dollar index (DXY). The euro bulls plunged significantly on Thursday after the US Bureau of Labor Statistics unveiled the Producer Price Index (PPI) numbers. The US PPI landed at 11% vs. 10.7% expectation on yearly basis. The legitimate indicator to display commodity inflation strengthened the greenback against the shared currency.
Federal Reserve (Fed) chair Jerome Powell’s interview with the Marketplace national radio program has unexpectedly added the option of two more jumbo rate hikes consecutively in the next policy meetings. Earlier, the street was expecting one more jumbo rate hike only above the 50 basis points (bps) elevation announced in the first week of May. Now, a getting longer spell of aggressive rate hikes is going the spurt the uncertainty in the FX domain.
Meanwhile, euro bulls are still discussing an embargo on Russian oil imports. Despite the withdrawal of the opposition by Germany to prohibit Russian oil on a sudden note, the European Union (EU) is facing headwinds of supply chain bottlenecks, restricted oil production, and unemployment fears to announce awaited embargo on oil from Moscow.
In today’s session, US Michigan Consumer Sentiment Index (CSI) holds significant importance. The catalyst is expected to land at 64 against the prior print of 65.2. An outperformance from the Michigan CSI data will add fuel to the greenback bulls.