EU/USD Posts New 2021 Lows, for 6th Straight Day
EUR/USD - H1
Monetary policy differential, recent dovish remarks by the ECB president, hawkish comments from Fed officials and upbeat data from the United States, have put relentless pressure on the pair, which extended its losses today to the lowest levels since July 2020.
After Ms. Lagarde pushed against tightening on Monday, Fed's Bullard, doubled down on last week's hawkish comments, with yesterday's interview on Bloomberg[1].
The St. Louis Fed president, who is a voter next year, said that Core PCE Inflation is quite high and called for faster QE tapering to be concluded by Q1 next year and provide time to assess rate policy.
Along with higher Retails Sales and Industrial Production from the US in October, the Eurodollar took another beating yesterday and dropped further today, to breach key 1.1290 level as we had anticipated – albeit a little faster.
As we approach the European session, the US Dollar shows exhaustion and we need to see in what mood markets will open. Furthermore, Eurozone Consumer Price Index is due at 10:00 GMT, while a series of Fed officials and ECB's Ms. Lagarde are on tap later in the day.
The move is overextended and the Euro finds support following the new low (1.1262), returning back above 1.1290. As such, further rebound towards mid-1.1300s could be in the cards, but a catalyst and/or broader risk-on sentiment will be required for a larger recovery towards the EMA100 (1.1400-10).
A compelling factor to drive a sustained recovery seems to be elusive at this stage and the pair continues to trade in negative territory. The 1.1290 breach, has opened the door for further weakness towards 1.1240, but 1.1184 is distant.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 20 Apr 2026 https://www.youtube.com/watch |
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.