- The euro under pressure around the London correction, falls across the board.
- The US dollar strengthens even as US yields recede.
- EUR / USD falls a hundred pips from weekly highs.
The pair EUR/USD is accelerating the slide on Friday amid a stronger US dollar across the board. The pair fell to 1.1563, hitting the lowest level in two weeks.
The pair remains close to the lows, with a strong bearish tone. The euro is also falling against the Swiss franc and the British pound. EUR / CHF is having the worst day in months, trading below 1.0580, the lowest level since May 2020.
US yields appear stable, while US stocks are showing mixed results, not behind the dollar rally. End-of-month flow and some positioning ahead of next week’s FOMC meeting could play a key role. “With the Fed ready to embark on downsizing and flexibility is likely to be a key policy feature going forward, risk / reward looms more positively for the USD inside and outside the Fed,” explained analysts at TD values.
The reversal in EUR / USD pushed the price from the highest in four weeks to weekly lows. The euro is heading towards the lowest weekly close since May 2020. It is currently at 1.1570, where the 200-week simple moving average is located.