Euro is recovering against the U.S. dollar as investors are more ready to take risks

After a recent decline to the level of 1.032 during the Asian session, there’s been some recovery of the euro against the U.S. dollar. The main currency pair is still able to hold the round level cushion of 1.0300, and it’s assumed that the pair will stay in a sideways trend.

At the same time, the risk aversion theme is no longer relevant. It’s suggested that the U.S. dollar growth potential is getting limited due to Fed’s chair Jerome Powell’s upcoming speech on Wednesday. Investors expect the regulator to be “less hawkish” on further interest rate hikes.

Besides the mentioned speech by Jerome Powell, the updated information on U.S. Gross Domestic Product (GDP) will also be of great importance for investors. 

Concerning the Eurozone, investors’ attention will be drawn to new data on inflation. A median projection is that the headline HICP will go down to 10.4%, while in the previous release of that data the level of 10.6% was mentioned. In the meantime, the core HICP data is expected to remain unchanged at the level of 5%.