EUR/USD falls below 1.0600, hits new yearly low

  • EUR/USD falls sharply, driven by increased demand for the Dollar following hawkish appointments in Trump’s cabinet.
  • The US Dollar Index hits a six-month high of 106.15, boosted by risk aversion in equity markets.
  • Upcoming US inflation data expected; A possible re-acceleration of inflation could influence the direction of Fed policy.

The Euro plummets sharply against the Dollar, falling below 1.0600 for the first time since November 2023, and hitting new yearly lows at 1.0594. At the time of writing, EUR/USD is trading at 1.0598.

EUR/USD falls below 1.0600, reaching 1.0594 as traders seek the safety of the US Dollar

Risk aversion keeps US stocks depressed, while investors seek safety, abandon the shared currency and buy the US dollar. The US Dollar Index (DXY), which tracks the performance of the Dollar against six peers, rises to a six-month high of 106.15, up more than 0.60%.

US President-elect Donald Trump appointed Mike Waltz as National Security Advisor and Marco Rubio as Secretary of State, both of whom are known for taking a tough stance on China. This raised fears among traders as the impending tariffs could lead to a re-acceleration of inflation as the Federal Reserve embarks on easing monetary policy.

Traders are also keeping an eye on the release of US inflation data on November 13. Estimates suggest that headline and core inflation are expected to halt their disinflation process, in part due to the robustness of the US economy.

EUR/USD Price Forecast: Technical Outlook

Once EUR/USD has broken above 1.0600, a further decline is expected. The next support would be the daily low of November 1, 2023 at 1.0516, before testing the figure of 1.0500. On the contrary, if buyers emerge and lift the exchange rate above 1.0600, the next resistance would be the daily low of November 11 at 1.0628, followed by 1.0700.

Indicators like the Relative Strength Index (RSI) indicate that the bears are in charge.

Euro PRICE Today

The table below shows the percentage change of the Euro (EUR) against the main currencies today. Euro was the strongest currency against the Pound sterling.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.51% 1.08% 0.81% 0.20% 0.85% 0.86% 0.27%
EUR -0.51% 0.56% 0.30% -0.31% 0.34% 0.34% -0.24%
GBP -1.08% -0.56% -0.26% -0.86% -0.22% -0.23% -0.80%
JPY -0.81% -0.30% 0.26% -0.60% 0.06% 0.05% -0.52%
CAD -0.20% 0.31% 0.86% 0.60% 0.65% 0.65% 0.07%
AUD -0.85% -0.34% 0.22% -0.06% -0.65% 0.02% -0.58%
NZD -0.86% -0.34% 0.23% -0.05% -0.65% -0.02% -0.59%
CHF -0.27% 0.24% 0.80% 0.52% -0.07% 0.58% 0.59%

The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the box will represent EUR (base)/USD (quote).

Source: Fx Street

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