- EUR / USD rose to its highest level since April 2018 above 1.2100.
- The US Dollar Index is tilting lower towards 91.00 during the US session.
- The Fed will publish its Beige Book at 1900 GMT.
The pair EUR/USD It capitalized on the extensive selling pressure surrounding the dollar and hit its highest level since April 2018 at 1.2109. Although the pair declined early in the US session, the technical correction remained short-lived. At time of writing, the EUR / USD was up 0.22% on the day at 1.2097.
DXY struggles to organize a significant rebound
The USD market valuation remained the main driver of the EUR / USD movements on Wednesday. The US Dollar Index (DXY) fell to its lowest level in more than 30 months at 91.10 during Asian business hours and rebounded modestly in the second half of the day on the back of risk reduction flows. However, with the major Wall Street indices reducing initial losses and stabilizing during the day, the DXY lost its recovery momentum and was last seen shedding 0.2% to 91.13.
Hours earlier, data published by Eurostat showed that the Unemployment Rate in the euro area fell to 8.4% in October to exceed the market expectation of 8.5%.
On the other hand, the ADP Research Institute’s monthly report revealed that US private sector employment increased by 307,000, disappointing analysts’ estimate of 410,000 by a wide margin.
On Thursday, euro zone retail sales data will be analyzed for further momentum. Later in the day, weekly reports on initial jobless claims from the US Department of Labor, IHS Markit, and ISM services PMI reports will be included in the US economic agenda.
Technical levels
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