- EUR / USD hits a three-week low at 1.2724.
- Market sentiment weighed on the EUR / USD as flows flew into the USD as a safe haven.
- The US Dollar Index rises above 93.00 despite weak data on US consumer sentiment.
The EUR/USD it continues to fall for the second day in a row, trading at 1.1728 and climbing as much as 0.30% on the day at the time of writing. After a stellar US retail sales report on Thursday, the EUR / USD is trading at a three-week lows, thanks to the strength of the US dollar.
The US Dollar Index (DXY) is at a three-week high
Risk aversion remains, with US stock indices falling between 0.26% and 1.19% and bond yields rising. The benchmark 10-year US rate is at 1.368%, nearly four basis points on Friday, backing the dollar. The US dollar index is up 0.33%, standing at 93.17.
During the European session, the Basic Consumer Price Index (year-on-year) of the Eurozone rose 1.6%, in line with expectations. Meanwhile, the core CPI for August (month-on-month) was up 0.3% as expected.
On the other hand, the US University of Michigan consumer sentiment rose slightly to 71 in September from 70.3 the previous month, although it was worse than the 72.2 expected. The report attributed the drops to higher prices, as consumers expect the inflation rate to rise 4.7%, matching the highest since 2008.
Investors’ attention is focused on the events of the next week. The Federal Open Market Committee will discuss monetary policy issues, with the reduction of QE being the focus of the statement.
Technical levels
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