- EUR/USD continues to capitalize on the large selling pressure surrounding the us dollar.
- Positive risk sentiment which allows MILLIONS of dollars, in order to preserve its strength.
- Thursday’s ECB meeting will be the next important catalyst for the common currency.
The pair EUR/USD has extended its rally into a seventh straight day Tuesday, as the risk-sensitive EUR, continued to outperform the us dollar in the risk-on market environment. After having touched its highest level since mid-March, at 1.1196, however, the pair has entered a consolidation phase, and was seen for the last time gain of 0.3% on the day at 1.1168.
The lack of macroeconomic data releases are allowed, the perception of risk to the impact of the pair of movements. Germany’s DAX 30 surged to its best level in three months, and has gained 3.75% on Tuesday and the Euro Stoxx 50 rose 2.4% to take into account the optimism of the market mood.
Course USD sale lifts EUR/USD
On the other hand, the dollar weakened against its major rivals, with the US Dollar Index slumping to its lowest level in 12 weeks, to 97.43. Although the index has slightly recovered at the end of Us session, it seems to be close of the day in the red to near 97.70.
On Wednesday, the Unemployment Rate of euro area data will be sought for a new impetus. Later in the day, the ADP Employment Change and the ISM Non-Manufacturing PMI data will be featured on the economy of their folder.
More importantly, the European Central Bank (ECB) will announce its monetary policy decisions on Thursday. Preview of the ECB meeting is the most likely scenario is that the bank tops of the pandemic emergency purchase program (PEPP) for a total of $ 1 trillion,” said FXStreet analyst, Yohai Elam. “In this case, which has a high likelihood of EUR/USD might be a lot, but probably stay within a range.”