EUR/USD finds bids near 1.1010 on upbeat market mood, EU leaders summit eyed

• Euro bulls have rebounded from 1.0960 after a corrective pullback as DXY weakens.
• EU will discuss an embargo on Russian oil in a meeting with Biden.
• Investors will focus on Fed Powell’s speech going forward.

The EUR/USD has witnessed a decent buying interest after a corrective pullback towards 1.0962 amid a positive undertone in the market. The asset is auctioning in a ted wider range of 1.0900-1.1120 after printing a fresh 22-months low near 1.0800.

The shared currency has remained vulnerable in the last two months as Russia’s invasion of Ukraine has posed a serious threat of stagflation in Europe. Rising oil and metal prices have spurred the prices attributed to manufacturing and other economic activities. A continent like Europe, which has a principal dependency on oil and energy from Russia, is facing the heat of sanctions on the Russian economy. The war between Russia and Ukraine has not only impacted the life and infrastructure of Ukraine and the financials of Moscow but has also impacted the supply chain structure of Europe.

Investors are eying the European Union (EU) leaders summit on Thursday, which will also be attended by US President Joe Biden. The EU has announced that a boycott of Russian oil will be the major agenda of the discussions. Therefore, investors will find fresh impetus from the summit.

While the US dollar index (DXY) surrendered its opening gains of Tuesday in the late New York session. The DXY slipped near 98.50 after failing to surpass 99.00 in multiple attempts. The market participants will focus on the speech from Federal Reserve (Fed) Chair Jerome Powell on Wednesday. The speech is likely to dictate the roadmap of imposing six more interest rate hikes by the end of 2022.