EUR/USD climbs to 1.1850 on cross-driven strength
- EUR/USD rises 0.30%, tracking bigger gains in EUR/JPY.
- The anti-risk yen is being offered alongside gains in US yields.
- The focus will be on the US core PCE data, due at 12:30 GMT.
EUR/USD is trading in the green in the 1.1860 neighborhood at press time despite the uptick in the US treasury yields.
US yields rise
The US 10-year yield is trading at 2-½-month highs near 0.78% at press time, having rallied by over 10 basis points from 0.65% to 0.75% on Thursday. Even so, the EUR/USD pair has gained 0.30%.
The pair looks to be benefitting from the 0.57% rise in EUR/JPY cross. The anti-risk yen is being offered across the board amid the rise in US yields and risk-on action in the global equities.
Bias remains neutral
While EUR/USD has gained nearly 0.3%, it is still trapped within the range of Thursday’s Doji candle. As such, the immediate bias remains neutral.
A close above the Doji candle’s high of 1.1902 is needed to put the bulls back into the driver’s seat. Alternatively, acceptance under 1.1762 – the low of Thursday’s Doji candle – would confirm a short-term bullish-to-bearish trend change.
The breakout may happen later today if the US core personal consumption expenditure for July – the Fed’s preferred measure of inflation – prints below the forecasted rise of 1.2% year-on-year. That would validate Federal Reserve’s latest decision to adopt a more relaxed approach to control inflation and could yield broad-based losses in the greenback. During the European trading hours, the EUR/USD may take cues from the Euroone business and investor sentiment indices, scheduled for release at 09:00 GMT.
Technical levels