EUR/USD erases previous losses and climbs towards the 1.1220 area amid a mixed-market mood

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EUR/USD erases previous losses and climbs towards the 1.1220 area amid a mixed-market mood By christianborjon EURUSD Majors Macroeconomics Sentiment Technical Analysis

m the US, Eurozone, UK’s and Canada, among other countries. Market participant’s reaction augmented demand for safe-haven assets. In the FX space, the USD, JPY, and CHF witnessed ebbs towards them, while the EUR began on the wrong foot, though late developments have seen the pair climbing. At press time, the EUR/USD is trading at 1.1224.

In the meantime, the Eurozone economic docket featured inflation figures for Spain. Spain’s HICP in February rose by 7.5% y/y higher than 6.8% estimated, while the inflation rate hit the 7.4% y/y more than the 6.1% of January. Recent ECB speaking talked about downside risks to eurozone growth from the Ukraine crisis, but clear upside inflation risks haven’t even begun to be fully felt. ECB’s meeting in March would be interesting. Analysts at Brown Brothers Harriman said that they “expect the bank to confirm that PEPP will end as scheduled, we believe Lagarde and company will try to maintain maximum optionality to see how the situation unfolds.

Meanwhile, Fed speakers witnessed Bullard and Waller maintaining their hawkish stances, favoring a 50 bps move. On Monday, Atlanta’s Fed President

 

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