EUR/USD: Euro Turns Higher After Losing Week

The European currency advanced to levels above $1.08 this morning, buoyed higher for a second straight day.

• The EUR/USD exchange rate is floating to the upside today, building on its Monday gains. Traders and forex speculators appear to be optimistic about the broader market picture as the dollar is retreating across the board and alternative currencies dominate dealmaking.
• The euro’s short-term upward momentum has been in the works since mid-March. Banking-sector jitters, however, prompted traders to seek the safe-haven allure of the US dollar. Last week, the EUR/USD fell to levels just above $1.07, after climbing for several straight days.
• Looking ahead, market participants will be waiting for the figures in the Fed’s preferred measure of inflation. Core PCE, short for price consumption expenditure, is expected to show that price pressures for February slipped to 0.4% on a monthly basis, from 0.6% in January.