EURUSD extended its gains to 1.12133 before easing to 1.1182 at the NY close. The shared currency has rallied in recent sessions on the view that the U.S. will trim interest rates more than Europe. Overnight, Germany’s 10-Year Bund yield was unchanged at -0.63% even as the key US 10-year rate plummeted 15 basis points to 1.00%. Despite the pledge from G7 officials to us all appropriate tools to achieve sustainable growth from the downside risk posed by the coronavirus spread, ECB officials have been quiet on any rate cuts.
Eurozone Preliminary CPI released yesterday was in line with expectations. Today sees Euro area and Eurozone Services PMI’s.
EURUSD has immediate resistance at 1.1215 followed by 1.1235. Immediate support can be found at 1.1160 and 1.1130. Look for consolidation in a likely range today of 1.1160-1.1220. Wait and see what the ECB’s response is. Meantime just trade the range shag on this one.
