- The euro loses steam after the ECB meeting on Thursday and falls against its main rivals.
- The dollar gains moment before falling in bags and rebound in yields.
- EUR / USD still positive for the week, but moving away from the highs.
The EUR / USD is falling on Friday, trading at the 1.1650 zone, where the lows for the day are. The euro is cutting much of Thursday’s gains after failing to top 1.1700.
The dollar is stronger on Friday in a climate of caution in the markets and the continuation of the rebound in Treasury bond yields. The 10-year rate is at 1.61% after having been at 1.56% at the start of the day.
After mixed data on Thursday from the US, on Friday the personal income and spending report, including relevant consumer inflation figures. In addition, the cost of employment index and the Consumer Confidence Index of the University of Michigan will be published.
In Europe it was known that inflation was 4.1% in the Eurozone, higher than the 3.7% expected, a maximum in almost 20 years. On the positive side, growth data for the third quarter showed an expansion of 2.2%, exceeding expectations.
EUR / USD loses steam
The setback after failing to overcome 1.1700 and the return for now below 1.1665 have taken momentum from the euro. A comeback above this last level could give him more vigor. The resistance to failure is 1.1695 / 1.1700. To the downside, below 1.1645, the retracement could extend to 1.1620 / 25 which is a key support and whose breakout would clear the way for levels below 1.1600.
Technical levels
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