- Euro falls for the fifth day in a row against the dollar.
- EUR / USD still does not find a floor and tests 1.1350
- Important data coming from the US: retail sales and industrial production.
After a slight rebound to the 1.1385 area, the EUR / USD resumed its bearish runs and fell to 1.1350, the new low since July last year. The pair remains under pressure, without finding firm support.
Strong dollar, weak euro
The dollar remains firm in the 16-month high zone, measured by the DXY, which is above 95.50. The signing of the infrastructure plan in the US has had no impact on the market. Tuesday will be the US day of the week for data as the retail sales report and industrial production data will be released.
“Ultimately, the strength of the dollar depends a lot on the strength of the US rebound, as well as when and how the Fed raises rates. The size and nature of the fiscal response to the pandemic is the point of difference between the US and elsewhere, and it will determine monetary policy, “said Kit Juckes, economic framework strategist at Societe Generale.
In the Eurozone, the GDP growth report for the third quarter showed no changes and confirmed an advance of 3.7%, in line with expectations. The data did not help the euro which is under pressure on Tuesday, not only against the dollar but also against the pound.
EUR / GBP falls for the third day in a row and is below 0.8450, the lowest since the end of October, and is beginning to look at this year’s low. Eis decline adds more pressure to EUR / USD.
Technical levels
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