- The dollar gains momentum due to the fall in the stock markets and the stability of the yield of Treasury bonds.
- DXY sets new weekly highs despite lower-than-expected data from the US.
EUR / USD extended the decline below 1.2100 and fell to 1.2085, the lowest level in a week. It is trading around 1.2090, facing strong downward pressure on a widespread rally of the dollar in the market.
The greenback looks strong on Friday unaffected by the US economic data that was below expectations, standing out among these, a decline in retail sales.
He US Dollar Index (DXY) rose to 90.70, also marking weekly highs. The good time started once Powell’s speech and Biden’s plan presentation passed. “Buy with the rumor, sell with the news”, seems to be the tone that is dominating the behavior of investors.
The stocks on Wall Street operate in negative territory, giving more strength to the dollar. In turn, Treasury bond yields are stable despite the messages from Powell and Biden, giving more support to the dollar.
From a technical point of view, if the barrier of 1.2100 is finally given up, the EUR / USD would be weakened, pointing to further losses. The next support can be seen at 1.2060 and then 1.2000. To the upside, a recovery above 1.2160 would ease the downward pressure.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
