EUR/USD was rising on the dovish hike from the Fed (see the 5 dollar downers). And then. the pair extended its gain in the aftermath of the Dutch elections where mainstream parties beat the extreme ones.
And after a period of consolidation, we hear some hawkish sounds from the European Central Bank.
Peter Praet, usually a dovish member of the Governing Council, said that the outlook is now better than it has been in previous years. Despite subdued inflation and downside risks, he sounds optimistic.
And the Austrian member Ewald Nowotny sounds even more upbeat. He says that a rate hike “may be on the way”. He specifically mentions raising the deposit rate, currently at -0.40% before moving on the main lending rate that stands at 0%.
EUR/USD further extends gains
EUR/USD is enjoying this to wake up from its consolidation and advance further. The world’s most popular pair now trades at 1.0744 after having gotten closer to the 1.0760 resistance line.
If we see a break, the next line to watch is 1.0830. Support awaits at 1.0710 and then 1.0660.
We have one more significant event this week. EUR/USD: Trading the UoM Consumer Sentiment
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