- Euro starts the ECB week weak.
- The dollar remains firm on the support of Treasury bond yields.
- EUR / USD remains sideways, now with bearish risks dominating.
The EUR / USD is falling on Monday and went from trading at highs since Thursday near the top of the current range at 1.1665, to falling below 1.1620, to lows in nearly a week, testing key short-term support. The result is given by a combination of a dollar that remains firm and some weakness of the euro.
The pair is trading at 1.1618, at last Thursday’s low. For days now, the EUR / USD has been moving sideways between 1.1615 / 20 and 1.1665 / 70. A drop below 1.1615 will put the euro at the lowest level in six days.
At the start of the week, the US dollar index (DXY) rises 0.15%, and stands at 93.75, close to the high of recent days. The key support for the DXY is at 93.50, which contained the downs and favored the rebound. The mainstay continues to be Treasury bond yields. The 10-year benchmark rate is 1.65%.
The euro shows weakness ahead of the meeting on Thursday of European Central Bank. The consensus of the analysts is that there will be no big announcements and that the meeting will serve as a preview of the December meeting, where there will be more in-depth discussions and decisions to be made.
With regard to data, it was known that the German IFO index fell slightly in October to 97.7, close to what was expected; the expectations index fell to 95.4 (the lowest since February) and the current conditions index fell to 100.1.
Technical levels
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