From a technical perspective, the pair is also seeing a modest bounce off support around 1.0400 if you go by the weekly chart. With broader risk sentiment also faring better today, the dollar is seeing a bit of a pullback against other major currencies.But EUR/USD did get a jolt from 1.0480 to 1.0520 on the back of Knot’s remarks here. At this stage, a July rate hike is all but a given but he floated the idea of a potential 50 bps rate hike and that is getting markets a tad bit excited.The ECB does have its fair share of courting the dramatic but one must take into account that Knot is one of the more hawkish members and for a central bank that hasn’t hiked rates in over a decade, it is tough to buy into a sudden major shift in mentality from a majority dove to an uber hawkish one.Nonetheless, money markets are now pricing in roughly 105 bps worth of rate hikes before year-end by the ECB. That compares with the roughly 95 bps as of yesterday.EUR/USD has now cleared its 200-hour moving average @ 1.0494 and a hold above 1.0500 does allow for buyers to establish some breathing room after an unrelenting push lower since the start of the year. The region around 1.0580-00 will offer some minor resistance next before we start to really come up with potential Fib levels to be tested.