- The EUR / USD rise appears to be capped by 1.1700 so far.
- The dollar is trading closer to the new 2021 highs initially touched.
- The US Philadelphia Fed index disappointed expectations in August.
The single currency remains depressed and makes the EUR/USD remain lateralized below 1.1700 on Thursday.
EUR / USD weakened by dollar gains
EUR / USD manages to stay away from lows initially touched in the 1.1660 region, although a convincing move above 1.1700 remains elusive.
Meanwhile, the dollar is trading on a firm note, extending weekly gains aided by risk aversion and growing prospects for QE tapering sometime towards the end of the year. The gains in the dollar come amid the decline in US 10-year yields back to the area below 1.25% after rising to the 1.30% zone in the wake of the FOMC Minutes on Wednesday. .
Earlier on the agenda, EMU’s current account surplus expanded to € 24 billion in June.
On the US agenda, weekly claims increased by 348,000 and the Philadelphia Fed index fell to 19.4 for the current month, both readings did not meet expectations.
Technical levels
So far, the pair is shedding 0.11% at 1.1696 and a break below 1.1665 (Aug 19, 2021 low) would target 1.1612 (Oct 20, 2020 monthly low) on its way to 1.1602 (Oct 4, monthly low). November 2020). On the positive side, the next hurdle arises at 1.1804 (weekly high on August 13) followed by 1.1845 (50-day SMA) and finally 1.1908 (monthly high on July 30).
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