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EUR/USD: Bulls keep targeting 1.0600

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EUR/USD: Bulls keep targeting 1.0600

  • EUR/USD keeps gains well past the 1.0500 mark.
  • Lagarde announced a 25 bps rate hike in July.
  • Lagarde suggested another raise in the policy rate in September.

EUR/USD keeps the familiar range north of the 1.0500 yardstick at the beginning of the week.

EUR/USD apathetic on Lagarde

EUR/USD clings to the positive performance amidst the generalized selling pressure around the greenback on Monday.

The pair, in the meantime, showed no meaningful reaction to the testimony of Chair Lagarde before the European Parliament. Indeed, Lagarde said the bank plans to hike the policy rate by 25 bps next month, while she also left the door open to another hike at the September event.

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In addition, Lagarde declined to comment on any feature of a new ECB’s bond-buying tool, at the time when she highlighted that conditions are in place for further economic growth in the region and that the fight against fragmentation is a precondition to success of the monetary policy.

What to look for around EUR

EUR/USD keeps the recovery-mode unchanged and manage to regain the area beyond 1.0500 the figure on Monday.

The resumption of the buying bias comes in response to the offered note in the US dollar, particularly following last week’s interest rate hike by the Fed.

However, EUR/USD is still far away from exiting the woods and it is expected to remain at the mercy of dollar dynamics, geopolitical concerns and the Fed-ECB divergence, while higher German yields, persistent elevated inflation in the euro area and a decent pace of the economic recovery in the region are also supportive of an improvement in the mood around the euro.

Key events in the euro area this week: ECB Lagarde (Monday) – Flash EMU Consumer Confidence (Wednesday) – ECB General Council Meeting, Flash EMU, Germany PMIs (Thursday) – Germany IFO Business Climate (Friday).

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Eminent issues on the back boiler: Fragmentation risks. Kickstart of the ECB hiking cycle in July? Asymmetric economic recovery post-pandemic in the euro bloc. Impact of the war in Ukraine on the region’s growth prospects.

EUR/USD levels to watch

So far, spot is gaining 0.29% at 1.0523 and the immediate up barrier comes at 10601 (weekly high June 15) followed by 1.0649 (55-day SMA) and finally 1.0786 (monthly high May 30). On the other hand, a break below 1.0358 (monthly low June 15) would target 1.0348 (2022 low May 13) en route to 1.0300 (psychological level).

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Malaysia’s $30bn wealth fund to stand by carbon-emitting state companies

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Malaysia’s $30bn wealth fund to stand by carbon-emitting state companies

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Japan’s biggest chipmakers from Toshiba to Sony brace for engineer shortage

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Swiss Luxury Brand Hublot Adopts Bitcoin Payments

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Swiss Luxury Brand Hublot Adopts Bitcoin Payments

The Swiss luxury watchmaker – Hublot – allowed its customers to buy certain limited products in cryptocurrencies by partnering with the bitcoin payment service provider – BitPay.

In addition, Prague City Tourism joined forces with Global Payments to enable passengers of the emblematic Tram Line number 42 to purchase tickets in digital assets.

Hublot Enters the World of Crypto

Embracing cryptocurrencies as a means of payment has turned into a move practiced by numerous companies part of the fashion industry. The Switzerland-based renowned watchmaker – Hublot – is the latest member of that club.

In a recent announcement, the firm said it launched a limited collection called “Big Bang Unico Essential Grey,” which consists of 200 watches. Those products could be purchased only on Hublot’s US e-Boutique platform as clients can pay with cryptocurrencies.

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Introducing the new #BigBangUnico Essential Grey, a limited edition of 200 pieces solely available online on the e-commerce platform https://t.co/FtQRk4LWq7. Exclusively on our Hublot United States eBoutique, clients will be able to shop using select Cryptocurrencies with BitPay. pic.twitter.com/Ny2tct8lQ2

— Hublot (@Hublot) June 21, 2022

The price of a single watch from that edition is around $21,200, meaning that if one wants to pay in bitcoin, they will have to part with approximately 1 BTC (calculated at current prices).

Last month, another Swiss luxury watchmaker – Tag Heuer – also said “yes” to such payments. The enterprise accepted leading cryptocurrencies, including Bitcoin, Ethereum, and Shiba Inu, plus five stablecoins as a means of settlement on its US website.

Explore Prague in Exchange for Crypto

Another example of the latest cryptocurrency adoption is Prague’s iconic Tram Line number 42. One of the oldest trams in the Czech Republic is currently used as a tourist attraction. Visitors can ride on it and explore the most popular sightseeings of the country’s capital, such as the Prague Castle, Charles Bridge, and the Powder Gate.

According to a local coverage, the Tram Line teamed up with Global Payments to allow travelers to pay for their experience in crypto. Petr Soukup – Director of IT at Prague City Tourism – said:

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“Cryptocurrencies are a very popular source of money today. There is no reason why people should not use them for regular payments. They can now pay for a ticket with a piece of bitcoin or, for example, Ethereum.”

He further explained that clients could pay in digital assets, but merchants can choose whether to accept the transaction in crypto or fiat (for example, Czech crowns).

Featured Image Courtesy of Hublot

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