EUR / USD loses steam before 1.1750 and retreats slightly

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He EUR / USD is rising on Friday after four consecutive days of declines. It reached the highest level of the day at 1.1746 and then lost steam. It is trading 1.1730, up about 25 pips on the day, but almost a hundred below where it was a week ago.

The strength of the dollar in recent days occurred mainly against the G10 currencies, in a context of deterioration in market sentiment. Likewise, the EUR / USD is still in the range of the last few weeks, without a clear direction.

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He dollar remained unchanged on Friday after the mixed reports on the US economy. First, there was an above-expected rise in retail sales in September and then an unexpected drop in industrial production. The latest data was consumer confidence measured by the University of Michigan, which rose to 81.2 in October.

On Friday, the weakness of the dollar has to do with a rise in stocks on Wall Street, where the Dow Jones advanced 0.77% and the Nasdaq 0.68%. The decline is also being limited, in part because of a rebound in Treasury yields.

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Market attention remains focused on the political campaign ahead of the November 3 presidential election in the US The market is largely discounting that there will be no deal between Republicans and Democrats anytime soon for more fiscal stimulus, but there will be after the elections.

Another event that is being closely followed has to do with the Brexi. UK Prime Minister Boris Johnson said they have to prepare for a no-deal exit and blamed the European Union. From the block, they responded to criticism. In any case, negotiations will continue next week.

From a technical point of view, the EUR / USD maintains a bearish bias in the very short term, although going above 1.1780 this could change. Should it fall below 1.1720 in the next few hours, a test of the week lows at 1.1685 / 90 would be expected.

Credits: Forex Street

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