EUR/USD finds fresh bids above 50-DMA

By FXStreet FXStreet (Mumbai) – The ongoing recovery in the higher-yielding assets such as the stocks, oil, industrial metals appear to weigh on the demand for the safe-havens euro, with EUR/USD now struggling to regain hourly 200-SMA at 1.0887.

EUR/USD back in the red as risk-on dominates

Currently, the EUR/USD pair trades modestly lower at 1.0883, retreating slightly from fresh session lows struck at 1.0868 at Tokyo open. The main currency pair is seen consolidating its overnight gradual descent above 50-DMA at 1.0862, and awaits the key ECB decision due later today for fresh moves in the euro.

The major peaked near 1.0940 region in the last NY session and extended to the downside as risk-off moods cooled-off amid recovery in the US stocks. While in Asia, the EUR/USD pair came under renewed selling pressure as the risk-on market profile returned following the rebound in oil prices, which lifted the sentiment on the Asian equities and thus, diminished the bids for lower-yielding/ safer currencies such as the yen, euro and the Swiss franc.

Meanwhile, Japan’s Nikkei rallies +1.60%, Australia’s ASX 200 jumps +1.13%, while the Shanghai Composite index rises +0.56%. Both crude benchmarks rally over 1% to trade above $ 28 mark.

Attention now remains on …read more

Source:: FX Street