Forex Report: EURUSD Hits 2-Week High as ECB Holds On Rates

Overnight, the ICE Dollar Index fell for a fifth straight session...


Overnight, the U.S. dollar weakened further against its major peers, with the ICE Dollar Index dropping 0.5% on day to 99.04, down for a fifth straight session.

EUR/USD advanced 0.6% to a two-week high of 1.0941. The European Central Bank kept its key interest rates unchanged as expected. 

Further, the central bank reduced the interest rate on TLTRO (longer-term refinancing operations, loans that ECB provides to European banks) to 50 basis points below the average interest rate on the Eurosystem's main refinancing operations.

Meanwhile, official data showed that the eurozone's economy contracted 3.8% on year in the first quarter (-3.4% expected), while jobless rate edged up to 7.4% in March (7.8% expected) from 7.3% in February. Also, CPI grew 0.4% on year in April (+0.1% expected).

Source: GAIN Capital, TradingView

GBP/USD climbed 0.9% to 1.2574.

USD/JPY gained 0.5% to 107.24, snapping a six-day decline.

USD/CAD rebounded 0.6% to 1.3966. Government data showed that Canada's GDP was flat on month in February (+0.2% expected).

Other commodity-linked currencies also retreated against the greenback. AUD/USD sank 1.1% to 0.6484 and NZD/USD dipped 0.5% to 0.6105.

China's official Manufacturing PMI fell to 50.8 in April (51.0 expected), while non-manufacturing PMI climbed to 53.2 (52.5 estimated).

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account