As US yields stay elevated, Euro showed strength and appreciated last week. Somewhat better NFP report helped USD strength yesterday, though elevated yields likely to keep USD strength in check. Thursday’s inflation data poses key risk to pair—elevated inflation readings could further weaken USD, marking bullish momentum for Euro. ECB’s yield curve much flatter in 2Y-10Y range compared to US and at lower level. Rate hike from ECB creates theoretical bull case for Euro but must be backed by structural factors.
Key Levels: Support at 1.15086 | Resistance at 1.18328
Investor Takeaway: RSI converged with MA line trending sideways; Thursday’s inflation data critical catalyst with flatter ECB curve creating theoretical but unconfirmed Euro strength case.
