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EUR/USD Gains Momentum Amid Dollar Weakness and Falling US Yields

  • The EUR/USD pair continues its bullish trajectory, taking advantage of the weakening US Dollar, and is trading around 1.0942.
  • Falling US Treasury bond yields act as a significant factor undermining the US Dollar, aiding the strength of the Euro.
  • Possible rate cuts from the Federal Reserve support EUR/USD.
  • Top members of the ECB Governing Council oppose rate cuts.

The common currency continues to gain ground against the Dollar on Monday, which remains weighed down by declining US Treasury yields, providing a headwind for the Dollar. Although the economic outlook in the Eurozone (EU) is pessimistic, the recovery of the EUR/USD continues, supported by a weak US dollar. At the time of writing, EUR/USD is trading at 1.0942, with buyers targeting the 1.1000 figure by the end of the week.

Euro advances against Dollar as market participants await crucial economic releases

The US dollar remains weak for the second consecutive day of trading. The Dollar Index (DXY), which measures the value of the Dollar against six currencies, fell 0.34% to 103.46 and remains the main reason for the strength of the Euro (EUR). According to the futures market, the latest inflation report in the United States (US) has increased the chances that the Federal Reserve (Fed) will cut rates next year.

The minutes of the latest meeting of the Federal Reserve Open Market Committee (FOMC) will be published on Tuesday. Jobless claims will be released on Wednesday, followed by the Chicago Fed’s national activity index and preliminary PMI numbers for November.

On the other side of the pond, the EU’s agenda will include the November PMIs, Germany’s IFO survey and the minutes of the latest meeting of the European Central Bank (ECB).

As for central banks, ECB member Hernández de Cos said the current level of rates should be sufficient, while Wunsch stressed that bets on a rate cut could trigger another hike by the central bank. The EU. The president of the Bundesbank and member of the Governing Council of the ECB, Joachim Nagel, was against rate cuts, while Holtzmann stated that the ECB is prepared for additional tightening, “if necessary.”

EUR/USD technical levels


Latest price today 1.0946
Today I change daily 0.0037
Today’s daily variation 0.34
Today’s daily opening 1.0909
daily SMA20 1.0686
daily SMA50 1.0633
SMA100 daily 1.0792
SMA200 daily 1.0805
Previous daily high 1.0909
Previous daily low 1.0825
Previous weekly high 1.0909
Previous weekly low 1.0665
Previous Monthly High 1.0695
Previous monthly low 1.0448
Daily Fibonacci 38.2 1.0877
Fibonacci 61.8% daily 1.0857
Daily Pivot Point S1 1.0853
Daily Pivot Point S2 1.0797
Daily Pivot Point S3 1.0768
Daily Pivot Point R1 1.0937
Daily Pivot Point R2 1.0965
Daily Pivot Point R3 1.1021

Source: Fx Street

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