EUR/USD EASES BELOW 1.0800 DESPITE HAWKISH ECB TALKS, EU/US INFLATION CUES EYED l

EUR/USD fades late Friday’s corrective bounce amid sour sentiment.

Headlines surrounding banking sector, nuclear fears from Russia weigh on risk appetite.

Mostly upbeat EU data, hawkish ECB talks previously allowed Euro to pare some losses.

Inflation numbers from EU/Germany, US Core PCE Price Index will be crucial to watch for fresh impulse.

EUR/USD retreats towards 1.0750 as it consolidates the previous weekly gains amid cautious mood in the market ahead of the key inflation data from Europe and the US. That said, the Euro pair eases from intraday high to 1.0765 during early Monday in Asia while fading the late Friday’s corrective bounce.

Fears of more banking sector fallout and Russia’s likely usage of nuclear weapons in its war with Ukraine joins the hawkish central bank talks to challenge the risk profile. It’s worth noting, however, that the US Dollar managed to pare some of its latest losses despite the downbeat Treasury bond yields. The recent rebound in the greenback could be linked to the slightly positive US data and hopes of faster rate hikes by the Federal Reserve (Fed). However, hawkish tone of the European Central Bank officials and an absence of disappointing numbers from the bloc allowed the EUR/USD pair to post the weekly gains in the last.

As per the preliminary readings of Eurozone S&P Global PMIs for March, the Manufacturing gauge arrived at 47.1 versus 49.0 expected and 48.5 prior but the Services PMI rose to a fresh 10-month high of 55.6 while rising from 52.7 prior and 52.5 expected. As a result, the Composite PMI also rose to a 10-month top of 54.1 versus 51.9 market forecasts and 52.0 previous readings.

On the same line were the first readings of Germany’s S&P Global/BME PMIs for March as the Manufacturing gauge dropped to a two-month low of 44.4 versus 47.0 expected and 46.3 prior but the Services PMI rose to 53.9 during the stated month from 50.9 prior and 51.1 expected. Further, the Composite PMI refreshed 10-month high with the 52.6 figure for March versus 51.0 expected and February’s 50.7.

On the other hand, US Durable Goods Orders for February dropped by 1.0% versus January's fall of 5% (revised from -4.5%) and the market expectation for an increase of 0.6%. Details suggested that the figure for Durable Goods Orders ex Defense and ex Transportation were also downbeat but

Nondefense Capital Goods Orders ex Aircraft came in firmer-than-expected 0.0% to 0.2%, versus 0.3% prior.