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Hopes for peace gave the euro a lift on Wednesday before buyers ran with that on the back of higher inflation figures from Spain and Germany yesterday. The inflation surge prompted market punters to bet on a more aggressive ECB, even if that does not look likely in my view.
European bond yields pulled higher yesterday but are giving that back in trading today. 2-year German bund yields ventured into positive territory for the first time since 2014 this week but have now fallen back to -0.05%:
The pullback in yields is perhaps what is seeing the euro be less buoyant today, with the dollar also holding slightly firmer across the board.
Looking back at EUR/USD, the drop below the mid-March highs of 1.1121-37 and more so the 1.1100 level will be a blow to buyers who have tried to build up some momentum from Wednesday this week.
There are large expiries near 1.1100 today that could anchor price action a little but sellers could start to look to venture towards the key hourly moving averages @ 1.1033-55 next on a hold below the figure level.