- The US dollar extends the general decline in appetite for risk.
- EUR / USD adds to recent gains and is heading for the best week since May.
The EUR/USD It is rising for the fifth day in a row on Thursday, driven by a decline in the US dollar across the board. It is trading at 1.1890, the highest level since July 6, on the way to the best week in three months.
During the US session, the US dollar fell, further supporting the EUR / USD rise. Economic data from the US contributed to the decline. Growth during the second quarter was 6.5%, below the 8.5% expected; initial jobless claims fell to 400,000, a reading worse than consensus; and pending home sales declined 1.9% in June versus expectations of a modest increase.
The economic figures added fuel to the dollar’s slide that began on Wednesday after the FOMC meeting. The DXY is down 0.41% to 91.90, the lowest level in a month. At the same time, US yields are hovering around recent levels. Stock prices have risen on Wall Street. The Dow Jones gains 0.55% and the Nasdaq 0.45%. Risk appetite weighs on the dollar.
The EUR / USD pair is at the 1.1900 zone. The 1.1890 resistance area is currently being tested and a break to the upside should lead to further gains above 1.1900. The next resistance is at 1.1920 / 25. The positive tone is likely to remain intact as long as it is above 1.1840; The next support is the 20-day moving average at 1.1820.