EUR/USD leaps above 1.2400, fresh daily tops
- The single currency has regained the 1.2400 handle and above, fresh tops.
- DXY drops further, around 89.25/20 as selling pressure mounts.
- ECB’s hawkish member J.Weidmann hinted at a H1 2019 rate hike.
The single currency saw its demand accelerated further today and is now lifting EUR/USD to fresh tops beyond 1.2400 the figure.
EUR/USD bolstered by ECB-speak
Spot has gathered extra upside traction after ECB’s hawkish member J.Weidmann noted that market expectations for a rate hike by the ECB around mid-2019 are ‘not completely unrealistic’.
In addition, the pair is sustaining the up move on a persistent offered bias hitting the greenback, which has forced the US Dollar Index (DXY) to re-visit the 89.20 region, fresh multi-day lows.
The now better tone around the riskier assets has pushed US 10-year yields back to the upper end of the recent range around 2.85%, all accompanying the bullish move in the pair.
No publications/releases scheduled in the EU/US calendar today, leaving the attention to speeches by E.Nowotny and D.Nouy. In the same line, R.Quarles, NY Fed W.Dudley (permanent voter, centrist) and Cleveland Fed L.Mester (voter, hawkish) are also due to speak later in the NA session.
EUR/USD levels to watch
At the moment, the pair is gaining 0.45% at 1.2408 and a break above 1.2416 (high Mar.26) would aim for 1.2448 (high Mar.8) and finally 1.2557 (2018 high Feb.16). 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).