The euro held onto overnight gains in early Asian trade on Wednesday after surging on reports that some Russian troops had moved away from the Ukrainian border, the common currency failing to make further progress.

Russia's defense ministry on Tuesday published footage to show it returned some troops to bases after the drills, however, US President Joe Biden said the United States had not verified the move.

In addition, hours after Moscow's announcement, Ukraine said the online network of the defense ministry and its two banks was overwhelmed by cyber-attacks.

On Wednesday the common European currency was steady at $1.1356, having experienced a 0.45% surge the day before.

Stocks around the world rebounded following the report, with MSCI's global equity gauge closing 1.34%. The Australian dollar, usually seen as sensitive to risk sentiment, echoed the euro, up 0.37% on Tuesday, before stabilizing.

The Fed is poised to raise interest rates at its March meeting, likely to start its program of hikes quickly. Higher producer price index data also helped send the benchmark US bond yields higher.

The dollar and US interest rates could move later in the day after the minutes of the Fed's February policy meeting. Investors are looking to see if the possibility of a 50-basis point rate hike has been discussed.

Nearly two-thirds of respondents to a Reuters poll of economists expect the Bank of England to raise interest rates by another 25 basis points at its March meeting. It would be the first time the Bank has raised interest rates at three consecutive meetings since 1997.

Euro/Dollar Moves Steady on Market Sentiment

The currency pair for EUR/USD continued to rise above the 1.1350 price point to be more precise around 1.1362 during trading hours in the European session with the improving sentiment from the market.

Data from the euro area has shown that GDP for the fourth quarter of the EU was able to expand by 4.6% on a year as expected.

The euro currency pairs against the US dollar managed to regroup some of its bullish trend momentum at the beginning of Tuesday and rose to near 1.1350 points as risk levels returned to the trading market.

The improvement in many market sentiments has certainly also made the US dollar experience considerable difficulties against its rival currencies while the common currency for Europe found a lot of demand.

The Russian Troops Have Returned to Their Initial Base

According to the Russian news agency Ifax, the Russian Ministry of Defense has announced that all Russian state troops have returned to their initial drop-off point with permanent status after their war games have finally concluded.

In an early reaction to these developments, the index for US stock futures rose quite sharply and made gains of 1% to 1.5%. The US dollar index itself has lost most of all its gains made on Monday and has fallen to 96.00.

If many current risk levels will continue to dominate the financial markets, the EUR/USD currency pair can maintain the momentum of its bullish trend.

However, rising yields on treasury bonds from the US could also help the US dollar to remain resilient against all its rivals and limit some of the gains of the euro pair against the US dollar.

After all the good news from the recovery of market sentiment, this euro currency pair is sure to be the target of many investors and day traders. For the nearest “Support” area, you can wait at the price of 1.1320 which if it succeeds in a breakout or is passed will continue to the 1.1300 points and then to 1.1260.

In addition, the nearest “Resistance” area of EUR/USD awaits at the 1.1370 points which if it is successfully broken or crossed will continue to the 1.1400 prices and then towards the 1.1450 level.