- Mixed US data ignored by market participants focuses on politics.
- EUR / USD gains after losing ground for four consecutive days.
The pair EUR/USD it is rising modestly on Friday and has trimmed earnings in the last few hours. The pair peaked at 1.1745 and at time of writing is trading at 1.1720, gaining ten pips on the day and more than 100 pips below the level it was a week ago.
The dollar lost momentum on Friday amid an improvement in risk appetite. However, over the past hour, stock prices on Wall Street rose further and EUR / USD fell back. The Dow Jones gained 0.88% and the Nasdaq was up 0.30%.
Higher US yields are supporting the dollar, which is posting modest losses despite risk appetite. The DXY bottomed early today at 93.53 and is trading at 93.70.
Economic data from the United States was mixed on Friday. Retail sales during September increased 1.9%, well above the market consensus. Industrial production in September unexpectedly fell. The latest report was a modest increase in consumer confidence measured by the University of Michigan.
Technical perspective
The risk of a steeper EUR / USD decline remains fairly limited based on Valeria Bednarik, Chief Analyst at FXStreet. “On the weekly chart, the pair continues to move above a firmly bullish 20 SMA, which extended its advance above the larger moving averages. Technical indicators have turned lower, but remain within familiar levels and well above their mid-lines.
On the daily chart, EUR / USD is neutral, having spent most of this week hovering around the slightly bearish 20-day moving average, although the larger moving averages are heading firmly higher well below the current level. Meanwhile, technical indicators remain neutral, with no clear directional force. ”
Credits: Forex Street
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