The post EUER/USD ticks higher amid subdued USD demand, remains below 1.0900 mark appeared on BitcoinEthereumNews.com.

EUR/USD attracts fresh buyers on Wednesday amid a modest USD downtick. Fed rate cut bets keep the US bond yields depressed and undermine the buck. Wednesday’s US data might provide some impetus ahead of the ECB on Thursday. The EUR/USD pair builds on the overnight bounce from the 1.0860-1.0855 region and ticks higher during the Asian session on Wednesday amid subdued US Dollar (USD) price action. Spot prices currently trade just below the 1.0900 mark and remain well within the striking distance of the highest level since March 21 touched on Tuesday.  The incoming softer US macro data pointed to signs of a cooling economy and cemented bets for an imminent interest rate cut by the  Federal Reserve (Fed) later this year. The expectations keep the US Treasury bond yields depressed and undermine the USD, which, in turn, is seen lending some support to the EUR/USD pair. The upside, however, seems limited as traders might prefer to wait on the sidelines ahead of the crucial European Central Bank (ECB) monetary policy meeting on Thursday.  As widely signalled in recent weeks by policymakers, the ECB is more likely to cut interest rates by 25 basis points at the end of its June 6 meeting. This will mark the first cut since March 2016 and will be accompanied by the latest economic projections. This, along with comments by ECB President Christine Lagarde will be scrutinized for cues about future rate cuts on the back of a rise in Eurozone inflation in May. This, in turn, will play a key role in driving the shared currency and the EUR/USD pair. The market attention will then shift to the release of the closely-watched US monthly employment details, popularly known as the Nonfarm Payrolls (NFP) report on Friday. The crucial US jobs data might influence expectations…

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Filed under: News - @ June 5, 2024 4:18 am