EUR/USD Bulls Await Move Beyond 1.1700 Amid Weaker USD
The EUR/USD pair has continued to gain strength, reaching near its highest level since May 14. The bulls are now waiting for a move beyond the 1.1700 mark before placing fresh bets.
The weak US Dollar (USD) is supporting the shared currency, with the USD Index (DXY) remaining depressed near a three-month low. This comes as traders scale back bets for an immediate Federal Reserve (Fed) rate hike amid signs of cooling inflation.
Commerzbank has cautioned that the tight balance in European gas storage increases pressure to import more gas, raising price risks. If gas inflows fail to recover sufficiently, it could further increase upward pressure on European electricity prices.