EUR/USD bulls approach 1.1050 amid softer USD, Eurogroup meetings, yields eyed

• EUR/USD takes the bids to refresh intraday high, prints the biggest daily jump in a week.
• US dollar struggles to capitalize on hawkish Fedspeak on steady yields, mixed sentiment.
• West versus Russia story fails to extend risk-off mood amid hopes of progress on peace talks.
• German IFO, US housing data and Fed policymakers’ speech will offer additional catalysts to watch for fresh impulse.

EUR/USD refreshes intraday high around 1.1035 as buyers cheer USD weakness to print the biggest daily gains in a week during the mid-Asian session on Friday. In doing so, the major currency pair rises for the first time in the last three days while consolidating the weekly losses.

The US Dollar Index (DXY) drops 0.30% intraday to 98.50 while snapping a two-day uptrend by the press time. The greenback’s latest weakness could be linked to the sluggish yields in Asia and the market’s indecision over the next moves concerning the Ukraine-Russia crisis.

That said, the US 10-year Treasury yields remain inactive near the previous day’s close surrounding 2.37% even as the latest comments from the Fed policymakers kept pushing for aggressive monetary policy normalization. It’s worth noting that a lower print of the US Weekly Jobless Claims since 1956 favors the market’s cautious optimism, coupled with the absence of major negatives from US President Joe Biden’s European visit to push leaders for more sanctions on Russia.

Talking about data, the preliminary Markit PMI figures for Eurozone and Germany came in softer for March while the US activity numbers were positive for the stated month. Also, US Durable Goods Orders printed -2.2% MoM growth figures for February versus the forecast of -0.5% and January's 1.6% gain. Further, Core Durable Goods Orders, which excludes Transportation, flashed -a 0.6% MoM number for the stated month versus an expected gain of 0.6% and upwardly revised 0.8% growth seen in January. 

Amid these plays, S&P 500 Futures print mild gains amid expectations that the latest push on Russia may result in a positive change in the peace talks between Moscow and Kyiv. Also favoring the cautious optimism are the headlines from Reuters quoting the US officials who forecast a dearth and inaccuracy of Russian missiles.

Looking forward, European leaders will have another day jostling over the Russia-Ukraine crisis while the German IFO sentiment data for March and the US Pending Home Sales for February will decorate the calendar. Also important are the scheduled speeches from the Fed policymakers.

Technical analysis

Although a clear upside break of the weekly symmetrical triangle keeps EUR/USD buyers hopeful, the previous support line from March 07, close to 1.1075, will challenge the upside momentum.

Meanwhile, pullback moves remain elusive beyond the stated triangle’s support line, around 1.0965 by the press time.