Euro is somewhat picking up bids on the second day heading into Friday’s European session. EUR/USD is encouraging bullish market sentiment and US dollar retreat as bulls. However, it should be noted that the US Federal Reserve (Fed) wishes the traders to study inflation data late on a monthly basis. Fears of the US Personal Consumption Expenditure (PCE) inflation figures confirming the Fed’s hawkish signals, flashed the previous week, keep the US dollar chained ahead of the key data.

Meanwhile France and Germany have suggested inviting Vladimir Putin to a summit with the EU as part of a broader reset of the bloc’s relations with Russia. Biden and Putin met for three hours in Geneva on 16 June, both saying the meeting was worthwhile while airing grievances against each other’s countries. They agreed their officials would meet more often as part of a strategic stability dialogue, and explore the possibility of working on a new arms control agreement.

On the other hand, US President Joe Biden’s ability to deliver on the promised stimulus, despite the small amount of cost and details, initially supported the market sentiment. Following that, the views of German diplomat Peter Almeyer show improvement in EU-US trade relations after a few years of differences. The German economic minister said, “The talks in Washington have shown an opportunity to resolve differences. He also hoped that the United States and the European Union (EU) would be able to resolve the differences on steel and aluminum tariffs by the end of this year.”

In the meantime, the Fed recalls epidemic-led relief efforts for large banks and fears of Govt’s Delta Plus variant explore risk-taking mentality. Adding to it, the lack of key data / events and Australia’s local locks, as well as the EU’s refusal to hold a summit with Russian President Vladimir Putin, pose a risk appetite challenge.

With all the mixed catalysts and US data, the views of central bank policymakers will also be a key factor in following the new impetus. U.S. If the PCE data confirms the positive forecasts, the EUR/USD may reduce its weekly gains.

EUR/USD 4 Hour Chart:

Support: 1.1913 (S1), 1.1895 (S2), 1.1874 (S3).

Resistance: 1.1951 (R1), 1.1973 (R2), 1.1990 (R3).

Amidst this the EUR/USD picks up bids upon U.S. data. We expect bullish trend for EUR/USD.