EUR/USD Pushes Above 1.22, Floats Near Three-Month High
- EUR/USD trades at a three-month high on Tuesday, breaks above 1.22
- Investors eye key data coming out on Wednesday and Thursday
EUR/USD Pushes Above 1.22
The EUR/USD pair is keeping firmly to the upside this week, as the buying momentum seeks to snatch a fourth consecutive day of gains. For the last three days, the exchange rate pushed higher, resulting in a gain of nearly 1%. On Tuesday, the EUR/USD strengthened. Accordingly, the pair was lifted to a three-month high, reaching a session top at 1.2218. Since the US Labor Department published consumer-price inflation on Wednesday, the US dollar has been losing strength across the board.
The EUR/USD reached a high of 1.2168 on Monday and is currently trading at 1.2215. The pair today is moving to the upside as the trend appears to maintain its bullish direction.
The pair closed last week’s trading modestly in the red, at 1.2142, lower by 18 pips on the week. However, the weekly low took the pair to 1.2051. Whereas the peak during the week was 1.2181, a two-month high.
In the medium term, the EUR/USD remains well-bid. Since early April, the euro has been gaining ground against the weaker dollar and the pair has appreciated by about 4.1%. The latest CPI data for April showed consumer prices rose 4.2% on an annual basis. The reaction in the currency market for over a week after the data was published has been to pressure the US dollar.
Other currencies also advanced against the greenback this week. The Canadian dollar and the Japanese yen moved higher. While the British sterling kept its bullish stance and is now in its fourth straight day of gains against the US dollar.
Investors Eye Key Data
Investors this week will be monitoring the key FOMC minutes from the meeting of Fed officials two weeks ago. The minutes, to be released on Wednesday, are expected to provide insight into how the Federal Reserve sees rising inflation and whether the central bank is considering any changes in its approach to the economy.
In addition, the US will also reveal the initial jobless claims for last week. The figures, expected on Thursday, will indicate if hiring in the job market is accelerating. Both news events are likely to influence the US dollar and the broad currency market and, therefore, heightened volatility could be expected.
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