- The recovery of the euro seems limited, it still shows vulnerability.
- EUR / USD is about to post the fourth weekly decline in the last five weeks.
The EUR/USD it is rising on Friday, cutting some of Thursday’s losses. The pair bounced above 1.1770 and reached levels above 1.1800. It is trading more than a hundred pips below the level it was last week.
The US dollar lost momentum after the start of the US session amid a pullback in US yields. The 10-year term fell from 1.68% to 1.63% in the last hours. The DXY turned negative and is trading near the lows at 92.70, shedding 0.15%.
US economic data was mixed on Friday. With personal income falling more than 7% in February as expected, a 1% decrease in spending and a better than expected reading on the Michigan Consumer Sentiment Index with an increase from 83 to 84.9.
From a weekly perspective, the EUR / USD is about to post the lowest close since October. The growth expectations differential between the Eurozone and the US weighs on the euro. The ongoing decline in Treasuries is also another factor supporting the rally in the US dollar.
The technical outlook is also favorable on the downside for the time being, with EUR / USD holding below the 200-day moving average at 1.1855. A recovery above 1.1850 would ease the downward pressure.
Technical levels
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