This is likely to grow further as crude oil and natural gas supply remains tight, putting the eurozone in a precarious position. The euro is nowhere near reversing its longer-term slide, rising inflationary pressures and giving the European Central Bank (ECB) more to consider as it deals with a falling Euro as well as widening bond spreads.
While this week’s session is coming to an end, the economic calendar moves to the United States, with attention focused on Fed Chair Jerome Powell and industrial production data, both of which could have an impact on EUR/USD.
The euro benefited from global currency purchasing against the dollar in the run-up to the core inflation report of June 17, as global tightening expectations proliferated and the dollar retracted. With this in consideration, the outlook for the dollar remains positive, as the eurozone has considerably larger issues related to uncertainty as opposed to the US.
President Christine Lagarde stated on June 16 that bond spreads are a source of worry for the European Central Bank (ECB), and there are procedures in place to reduce bond spreads to prevent further concerns in the area.
Bulls are hardly recovering out of what might have been a big slide lower had the 1.0340 support level been crossed, as per the price activity on the EUR/USD pair.
