Trump Bump is associated with broad based US dollar strength and rally in the equities, base metals.
But what we are seeing now is a “different kind of Trump Bump” – Trump’s bearish comments on the US dollar and the dovish talk about the interest rate bumped up EUR/USD/led to broad based losses in the US dollar.
The 10-year treasury yield fell to a five-month low of 2.22%, thus weighing over the US dollar. The Trump-led sell-off in the US Dollar saw the EUR/USD close well above the 50-DMA level of 1.0656.
The currency pair was last seen trading around 1.0670 levels. German final CPI data for the month of March may not move EUR pairs as the focus remains on the Franco-German yield spread and broader market sentiment.
EUR/USD Technical Levels
A break above 1.0689 (Apr 5 high) would open up upside towards 1.0740 (Mar 29 low) and 1.0782 (Mar 17 high). On the other hand, a breakdown of support at 1.0656 (50-DMA) could yield a pull back to 1.0626 (100-DMA + 5-DMA) and 1.06 (zero figure).