EURUSD broke the April downtrend this morning with hawkish tone change from Guindos. European Central Bank’s vice president Luis de Guindos said “ I see no reason why we should not discontinue our Asset Purchase Program in July” and added that a rate hike is possible in July depending on data.
After Guindos’s hawkish shift, Eurozone CPI data announced %7.4, close to expectations but not a surprise. The data may slowed the rise of EURUSD until the Lagarde and Powell’s speech at IMF panel later today. 1.0950 and 1.0970 (%50 level of latest down wave) will be key resistances for the week. If another hawkish seen from Lagarde will be seen as well, EURUSD might get above the resistances and 1.10 as well.
