The Euro is trying to hold its gains!
The Euro is trying to hold its gains over 1.07 levels. We are getting closer to FED June Meeting and rate hike pricing may push pair down a little with Rising DXY. On a technical basis the first resistance on a rise is 1.0802 and first support is 1.0707 Level.
The dollar index rose toward 102 on Wednesday, extending gains in the previous session, amid rising Treasury yields and as worries over a further acceleration in global inflation drove safe-haven demand for the greenback. US Treasury yields have been climbing this week after Fed Governor Christopher Waller said the central bank should be prepared to raise interest rates by 50 basis points at every meeting from now on until inflation is decisively curbed. President Joe Biden also assured Fed Chair Jerome Powell in a meeting on Tuesday that he will give the central bank the space and independence to address inflation as it sees fit. The dollar also found support after data showed euro-area consumer inflation soared to a record, stoking fears of further acceleration in global inflation and denting risk sentiment among investors.
Stock futures in Europe pointed to small gains when markets open to kick off a new month on Wednesday, attempting to rebound from losses in May. Dax futures added 0.4% and Stoxx 50 0.3%. Investors await fresh manufacturing PMIs for an update on the economic performance in the Eurozone, after data released yesterday showed price pressures have not peaked yet. Meanwhile, retail sales in Germany slumped 5.4% last month, much worse than forecasts.