- EUR / USD is rising for the third day in a row on Thursday.
- The US dollar index extended its decline towards 90.50.
- The release of mixed macroeconomic data from the US did not help the dollar.
The pair EUR/USD it gained nearly 200 pips in the previous two days and retained its bullish momentum to touch its highest level since April 2018 at 1.2177. After that impressive rally, the pair appears to have entered a consolidation phase and was last seen trading at 1.2145, a 0.25% gain on the day.
USD selloff continues ahead of Friday’s NFP data
The USD market valuation remained the main driver of the EUR / USD movements on Thursday. The US Dollar Index (DXY), which tracks the dollar’s performance against a basket of six major currencies, fell to its lowest level in more than two years at 90.51 and US data did little or nothing to limit losses.
The weekly publication of the US Department of Labor showed that initial jobless claims decreased by 75,000 to 712,000. Additionally, IHS Markit’s Services PMI report revealed that business activity in the services sector expanded at its strongest rate in more than five years. On a negative note, the services PMI fell to 55.9 in November to mark its lowest reading since February and disappointed the market expectation of 56.
Hours earlier, Eurostat reported that retail sales in both the euro area and the US increased by 1.5% in October, compared to analysts’ estimate of 0.8%, and allowed the shared currency to outperform the dollar. .
No macroeconomic data from the euro area will be released on Friday and investors will pay close attention to the US Non-Farm Payroll (NFP) report.
Technical levels
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