EURUSD climbed back above the key psychological level this morning. The main currency pair is making a break above 1.00 handle ahead of tomorrow's ECB meeting. ECB is expected to deliver another 75 basis point rate hike, and economists expected the terminal rate to be reached at 2.5% in March 2023. However, the main driver of a move above parity seems to be USD weakness. Greenback is struggling as US Treasury yields pull back. Moreover, Reuters reported that Chinese state-owned banks stepped into the market yesterday to sell USD in order to prop up weakening yuan.
EURUSD is currently trading at a daily high above 1.0030. The move also has a technical explanation - the pair broke above a 2022 bearish trendline earlier this week. A resistance zone ranging below 1.0035 is being tested at press time.
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Source: xStation5
