- EUR / USD is still on track to close the day deeply lower.
- The US Dollar Index is holding on to strong daily gains on Thursday.
- The focus shifts to the eurozone consumer price index data.
The pair EUR/USD it broke below its horizontal trading range on Thursday and fell to its lowest level since late August at 1.1751 before entering a consolidation phase. At time of writing, the pair was down 0.45% on the day at 1.1763.
DXY rises towards 93.00
The overall strength of the USD, supported by the release of strong macroeconomic data, weighed heavily on the EUR / USD in the second half of the day.
Data released by the US Census Bureau on Thursday showed that retail sales rose 0.7% in August. With this reading much better than the market’s expectation of a 0.8% drop, the dollar continued to outperform its main rivals. Additionally, the Philadelphia Fed manufacturing index improved to 30.7 in September from 19.4 in August. On a negative note, Initial Unemployment Claims rose to 332,000 in the week ending September 11 from 312,000. Currently, the US Dollar Index is up 0.47% to 92.92.
Meanwhile, the 10-year US Treasury yield is up nearly 2%, providing an additional boost to the USD.
On Friday, euro area Consumer Price Index (CPI) data will be analyzed to give new momentum. Investors expect the CPI to remain unchanged at 3% per annum in August. Several authorities at the European Central Bank (ECB) said earlier in the week that the rise in inflation was expected to be temporary. However, the market reaction is likely to be tempered by this data unless there is a large divergence from the market consensus.
Technical levels
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