Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

EUR/USD climbed to highs not seen in more than three weeks on Monday, as European Central Bank officials added to prospects of further aggressive policy tightening.

ECB policy makers said that they would need to raise the benchmark interest rate to 2% or even higher in order to curb record inflation in the Euro Area.

Bundesbank President Joachim Nagel said during an interview with German radio over the weekend that if the outlook for consumer prices did not change, “further clear steps must follow.”

Meanwhile, market players awaited the key US CPI inflation report due out on Tuesday, which may allow the Federal Reserve room to slow the pace of rate increases at its upcoming policy meeting next week.

Fed Governor Christopher Waller said on Friday that he favored “a significant increase at our next meeting,” and St. Louis Fed President James Bullard once again expressed support of a 75 basis point rate hike.

“Officials have clearly articulated the need for the FOMC to keep raising interest rates until there is compelling evidence that inflation is falling,” Joseph Capurso, a strategist at Commonwealth Bank of Australia, wrote in an investor note.

“Regardless of the outcome of the CPI report, we judge the FOMC has much more work to do,” which translates into further USD upside in the short and medium terms.

As of 8:30 GMT on Monday EUR/USD was gaining 1.39% to trade at 1.0183. During early European trading session, the major Forex pair climbed as high as 1.0198, which has been its strongest level since August 17th (1.0203).

Daily Pivot Levels (traditional method of calculation)

Central Pivot – 1.0050
R1 – 1.0107
R2 – 1.0171
R3 – 1.0228
R4 – 1.0286

S1 – 0.9986
S2 – 0.9929
S3 – 0.9865
S4 – 0.9802

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: EUR/NOK daily trading forecastForex Market: EUR/NOK daily trading forecast Yesterday’s trade saw EUR/NOK within the range of 8.1277-8.1822. The pair closed at 8.1640, gaining 0.29% on a daily basis.At 6:23 GMT today EUR/NOK was down 0.01% for the day to trade at 8.1642. The pair touched a daily low at 8.1601 at […]
  • Forex Market: GBP/USD slips on doubts over June 21st re-opening plan, Dollar awaits CPI inflation dataForex Market: GBP/USD slips on doubts over June 21st re-opening plan, Dollar awaits CPI inflation data GBP/USD was a notch weaker at the start of the new week as doubts emerged that the British government would stick to its plan to entirely lift coronavirus-related restrictions on June 21st. Hopes of a rapid re-opening of the UK economy […]
  • European stocks climb after dramatic dropEuropean stocks climb after dramatic drop European stocks rose as the benchmark indexes Euro Stoxx 600 and Euro Stoxx 50 gained 0.38% and o.27%, respectively, rebounding from 1.5 year low.Federal Reserve said it may start reducing bond purchase program at the end of the year if […]
  • Crude oil trading outlook: WTI and Brent futures steady after losses last weekCrude oil trading outlook: WTI and Brent futures steady after losses last week WTI and Brent futures were little changed during early trade in Europe today. A possible surge of supplies from Libya and southern Iraq seeming safe enough pressured crude contracts for sizable losses last week.West Texas Intermediate […]
  • Forex Market: USD/CHF daily forecastForex Market: USD/CHF daily forecast During yesterday’s trading session USD/CHF traded within the range of 0.8872-0.8924 and closed at 0.8878.At 6:44 GMT today USD/CHF was losing 0.04% for the day to trade at 0.8876. The pair touched a daily low at 0.8872 at 6:11 […]
  • China Mobile and Apple sign a long-awaited dealChina Mobile and Apple sign a long-awaited deal A long-awaited deal between Apple Inc. and China Mobile Ltd. has been signed. The tie-up concerns the distribution of iPhones on China Mobiles network, and will have literally a push-up effect on the Apples sales on the Chinese market - the […]