- The euro and the pound remain under pressure, unable to consolidate recovery.
- EUR/USD nears low in years after failed bounce to 1.0418.
- Treasury bond yields rise on Friday.
The EUR/USD lost steam in the last few hours and erased daily gains returning below 1.0400, and approaching the low since the beginning of 2017 which it reached on Thursday at 1.0353.
EUR/USD’s recent pullback hit as low as 1.0370 and remains under negative pressure. If the support at 1.0350 gives way, then the 2017 low at 1.0339 follows; below it would be at the lowest since 2003. On the upside, at 1.0385 is the 20-hour moving average and above it the next resistance at the 1.0420 area and then 1.0450.
If the week ends at these levels, for the euro it would be the lowest weekly close since December 2002. The climate of pessimism in the stock markets continues to be a supportive factor for the dollar, although on Friday the stock markets are recovering but without favoring to the euro.
On Friday, a drop in industrial production in the Eurozone of 1.8% in March was known, the largest decline in almost two years.
In the US, the import price index and consumer confidence data from the University of Michigan will be published. As far as the Federal Reserve is concerned, Neel Kaskhari, and Loretta Mester will speak publicly.
Technical levels
Source: Fx Street
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