- The dollar gains momentum amid the risk version, but falling US yields limit the rise.
- EUR / USD is heading towards a modest weekly loss, without hitting new yearly lows.
The EUR/USD it weakened during the American session and fell to 1.1266, reaching the lowest level since Tuesday. It then rallied to 1.1300, cutting losses. The drop came amid a rally in the US dollar across the board, but falling US yields limited the dollar’s rise.
US economic data and the Fed’s monetary policy expectations boosted the dollar on Friday. The US employment report showed mixed data and later the service sector figures (ISM and PMI) beat expectations.
“The FOMC will clearly discuss a quicker drawdown at its next meeting on Dec. 15, but this morning’s payroll number and the lighter reading on average hourly earnings growth gives the Committee an opportunity to perhaps target its January meeting, ”said Wells Fargo analysts.
The EUR / USD pair is about to end the week with a modest decline. The positive for the euro is that it did not hit new lows for the year to date for the first time after four weeks. The price continues to consolidate around 1.1300, still in a downtrend but showing signs of consolidation in the short term.
Technical levels
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