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Euro firms near multi-month high as traders eye break above 1.1700
EUR/USD is set for strong weekly and month-to-date gains, with the euro supported by a weaker US dollar and renewed focus on upcoming Eurozone and US flash PMIs.
The euro is holding near its highest level since May 14 against the US dollar, as dip-buyers return to EUR/USD and traders wait for a decisive move beyond 1.1700 before adding fresh exposure, FXStreet reports.
Spot prices remain supported by a broadly weaker US dollar, with the USD Index staying near a three-month low as traders scale back expectations for an immediate Federal Reserve rate hike amid signs of cooling inflation.
FXStreet also points to expectations that energy-driven inflation could push the European Central Bank toward a more hawkish stance. Commerzbank said tighter European gas storage increases the pressure to import more in coming months, raising price risk, and could further lift European electricity prices if gas inflows do not recover.
On the US side, the outlet notes that the immediate reaction to a plan by the US Treasury to double the size of some long-dated debt buyback operations has faded, while hawkish Federal Open Market Committee minutes keep support for higher US bond yields. Traders are also watching flash PMIs from the Eurozone and the US for fresh momentum, alongside geopolitical developments involving the US and Iran that can influence safe-haven demand for the dollar.
Latest closeEUR/USD 1.157 ▲0.4%