EUR/USD: Weekly upside appears capped around 1.0760

The recovery in the risk complex – mainly on the back of alleviated concerns surrounding the banking system on both sides of the ocean – keeps the buying pressure unchanged around EUR/USD, which adds to Thursday’s advance past 1.0600 the figure at the end of the week.

On the USD-side of the equation, the knee-jerk in the buck comes amidst the resumption of the downtrend in US and German yields, all following the 50 bps rate hike by the ECB on Thursday and conviction of a 25 bps rate raise at the Fed’s gathering on March 22.

Data wise in the euro area, final inflation figures showed the CPI rose 8.5% in the year to February and 5.6% when it came to the Core inflation.

In the US, Industrial Production came flat on a monthly basis in February and contracted 0.2% vs. the same month of 2022. In addition, Manufacturing Production expanded 0.1% MoM and contacted 1.0% over the last twelve months. Finally, the CB Leading Index dropped 0.3% MoM during last month and the advanced Michigan Consumer Sentiment is expected to have deflated to 63.4 in March.hEUR/USD: Weekly upside appears capped around 1.0760

The recovery in the risk complex – mainly on the back of alleviated concerns surrounding the banking system on both sides of the ocean – keeps the buying pressure unchanged around EUR/USD, which adds to Thursday’s advance past 1.0600 the figure at the end of the week.

On the USD-side of the equation, the knee-jerk in the buck comes amidst the resumption of the downtrend in US and German yields, all following the 50 bps rate hike by the ECB on Thursday and conviction of a 25 bps rate raise at the Fed’s gathering on March 22.

Data wise in the euro area, final inflation figures showed the CPI rose 8.5% in the year to February and 5.6% when it came to the Core inflation.

In the US, Industrial Production came flat on a monthly basis in February and contracted 0.2% vs. the same month of 2022. In addition, Manufacturing Production expanded 0.1% MoM and contacted 1.0% over the last twelve months. Finally, the CB Leading Index dropped 0.3% MoM during last month and the advanced Michigan Consumer Sentiment is expected to have deflated to 63.4 in March.