EUR is struggling!
EUR is struggling to rebound as energy prices have reached to 5 month high levels in Europe. Many investor started to bet against European countries as they claim no more cheap Russian Gas for Europe. On a technical basis the first resistance on a rise is 1.0345 and first support is 1.0135 Level.
The dollar index traded just below 107 on Thursday, remaining close to its highest levels in 20 years after minutes from the Federal Reserve’s June meeting pointed to consensus that interest rates need to rise further to prevent inflation from becoming entrenched. Policymakers emphasized the importance of fighting higher consumer prices, even if it hampers growth, strengthening bets that the Fed may hike its funds rate by 75bps this month and adding to the dollar’s safety appeal. Demand for the greenback was also supported by the looming energy crisis in Europe and political turmoil in the United Kingdom.
Major bourses in Europe were in the green on Thursday, with the Dax rising more than 1% and the Stoxx 600 0.9%, led by gains in miners and energy shares. Investors digest the latest FOMC minutes which showed the Fed will continue to fight inflation, saying another 50 or 75 bps hike in the fed funds rate will be appropriate. Investors also await the meeting accounts from the ECB for more clues on the central bank's next steps and view on the economy, at a time incoming data continue to point to a slowdown. Industrial production in Germany rose a meagre 0.2% last month, half market forecasts, as supply constraints and raw material shortages continue to weigh. At the same time, investors prepare for the earnings season which will give details on the performance of the corporate sector in the second quarter.