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Jun 22 - 05:55 PM

EUR/USD - COMMENT-US Recap: Dollar, Yen On The Run As Risk Rebound Boosts EUR/USD

By Paul Spirgel  —  Jun 22 - 04:00 PM

The dollar and yen beat a hasty retreat versus other major currencies as rising stocks encouraged investors to extend their exodus from safe-haven assets in the hope that economic recovery would take root and rising coronavirus cases would remain manageable.

EUR/USD and AUD/USD were key beneficiaries of the upbeat tone among investors.
EUR/USD was maintaining gains of about 0.70% in late U.S. trade, and the chart outlook appeared bullish nL1N2DZ1MG as it held above the 21-day moving average and RSIs were rising.

Meanwhile, a shift at Germany's top court could make it even tougher to bet against the single currency nL1N2DZ0Z1.

AUD/USD was still enjoying gains of more than 1% on the day, and charts were also sending signals that should concern shorts nL1N2DZ1LM.

After finding support below 1.2350 for a second consecutive session, GBP/USD rallied above 55- and 30-DMA resistance by 1.2420.
It reached a high of 1.2477 and appeared set to close nearby nL1N2DZ1HU.

Sterling will run into more significant resistance above 1.2500 at 100- and 21-DMA resistance by 1.2507.
With global optimism over the post-pandemic recovery taking precedent over resurgent COVID-19 infection numbers -- and boosting the pound -- the only thing tempering GBP/USD-bullishness was the meandering negotiations between the EU and UK over Britain's post-Brexit trade status.

In contrast to the action in other currency pairs, USD/JPY drifted toward a flat close to the U.S. session after spending the day in a truncated 26 pip range.
Unwinding of safe-haven flows meant that the dollar and yen -- both highly sought after in turbulent times -- suffered similar bouts of selling nL1N2DZ1K0.

EUR/JPY rose 0.80% and AUD/JPY gained 1.15% as investors were tempted by riskier bets.

Underlining the upbeat risk sentiment, copper and oil both gained.
But precious metals' ability to hold relatively firm hinted that traders may not be going all in on the risk rally.

For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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