EUR/USD Falls to 1.0580 as Bulls Disregard Risk-off Sentiment Post-ECB Minutes

The EUR/USD currency pair eased off a two-week high in Friday’s Asian session as sellers defended the 1.0580 mark.

Before the Asian open, the EUR/USD pair was bullish at around 1.0600. On the daily chart, technical indicators are within neutral levels, with Momentum above the midline.

The atmosphere was dark. Stocks in the United States attempted to gain ground but fell for a second day. For the third day in a row, the US dollar was on the defensive, losing around 1% and closing at 102.881.

Despite mixed economic news throughout the North American session, the Fed’s plans to hike rates by 50 basis points in June remain unchanged. Initial Jobless Claims in the United States were 18K higher than projected last week, while Continuing Claims fell to their lowest level since 1969. The Philadelphia Fed Manufacturing Index rose slower than projected in May, while Fed speeches dominated the news.

According to ING analysts, the ECB released its latest monetary policy minutes during the overnight European session. The minutes, they argued, verified multiple ECB members’ hawkish tone since April. The ECB appears to be responding too late, and monetary policy must be normalised soon. The question now is not whether or how much the ECB should hike rates in July.

The EU will release its May Consumer Confidence Report on Friday, but the US will not.

Conclusion

The EUR/USD pair fell to a multi-year low of 1.0348. The week finished a few pips above 1.0400, with sellers boosting their short positions in response to surges.

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