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  • EUR/USD advances to 1.1250, weekly highs.
  • Sellers are now dragging the buck to fresh lows near 97.00.
  • Powell reiterated the Fed will act to sustain expansion.

EUR/USD has abruptly reversed the steady trading and has now jumped to weekly highs in the 1.1250/60 band.

EUR/USD bid on Powell’s remarks

Spot has quickly reversed the apathetic mood after Chief J.Powell reiterated once again that the fed will act to sustain the ongoing economic growth. In addition, Powell’s remarks point to risks that inflation could stay low for lower than anticipated, while trade uncertainty and fears on the global growth keep weighing on the outlook.

In the wake of the remarks, the greenback slumped to fresh lows and it is now threatening to challenge the critical support at 97.00 the figure, while yields of the key US 10-year benchmark fell from the 2.12% area to 2.04% for the time being.

Later in the day, Powell will testify before the House Financial Services Panel and the Fed will publish its minutes from the June gathering, although after Powell’s remarks there is small room (if any at all) for surprises.

EUR/USD levels to watch

At the moment, the pair is gaining 0.34% at 1.1245 and a break above 1.1255 (high Jul.10) would target 1.1326 (200-day SMA) en route to 1.1412 (high Jun.25). On the other hand, the next up barrier lines up at 1.1193 (monthly low Jul.9) followed by 1.1181 (low Jun.18) and finally 1.1106 (2019 low May 23).