The U.S. dollar advanced earlier on the day underpinned by Treasury yields’ rise. However, as yields turned lower, so did the buck. The yield on the 10-year note hit a peak of 3.062% on Tuesday before falling back to 2.96%.
On Thursday, the European will announce its decision. Although no rate changes are expected at this point, the bank is poised to end its program. The tone officials take in their statement and their outlook for the July meeting will be key for the EUR/USD . The lack of clear signals toward a first hike in July or a “dovish” tone from the President Christine Lagarde could weigh on the euro . However, even if the “hawkish” tone is present, a “buy the rumor, sell the fact” scenario cannot be ruled out.
From a technical standpoint, the EUR/USD holds a slightly tone according to the , although the upward momentum continues to fade as the pair is unable to establish above a descending trendline coming from February highs.
On the upside, the EUR/USD pair needs to break above the mentioned trendline, currently around 1.0760, to pick up momentum, with next targets seen at the 1.0850area and then the 100-day at 1.0950.