EUR/USD steadies around 1.1400 after surging to fresh multi-week highs
- EUR/USD rose above 1.1400 for the first time in more than a month.
- Broad-based USD weakness allows EUR/USD to cling to its gains.
- Focus remains on ECB's policy meeting on Thursday.
After spending the European morning around 1.1350, the EUR/USD pair gained traction during the American session and advanced to its highest level since June 10th at 1.1406. As of writing, the pair was up 0.5% on the day at 1.1396.
USD selloff continues on Tuesday
The heavy selling pressure surrounding the greenback seems to be fueling the pair's rally in the second half of the day. In the absence of significant fundamental drivers, the US Dollar Index (DXY) continues to react to Wall Street's performance. Following an uninspiring start to the day, major equity indexes in the US turned north and made it difficult for the safe-haven USD to find demand.
As of writing, the DXY was down 0.3% on the day at 96.25, while the Dow Jones Industrial Average and the S&P 500 were gaining 1.2% and 0.5%, respectively.
Earlier in the day, the data published by the Eurostat revealed that Industrial Production in the eurozone expanded by 12.4% in May following April's contraction of 18.2%. Although this reading came in worse than the market expectation of 15%, the shared currency's reaction remained muted.
On Thursday, the European Central Bank (ECB) will announce its interest rate decision and release its policy statement. Previewing this event, “we expect no major policy changes next week," said Rabobank analysts. "The ECB waits for more data on the economic outlook, developments on the fiscal front as well as the impact of its own measures.”
Technical levels to watch for