- EUR/USD trims losses after US data
- The dollar loses strength, but remains firm in a context of risk aversion.
- US and European bond yields continue to decline.
EUR/USD is paring losses after falling to a fresh two-week low at 1.0380. The pair is trading at 1.0415, trying to break away from the floor, but still facing downward pressure.
The rebound began after the publication of economic data from the United States that showed a 0.3% rise in the core price index of personal consumption spending in May, slightly below expectations. For their part, the initial requests for unemployment benefits remained around 230,000.
A slight improvement in the equity markets that eased the red, fueled the EUR/USD rebound. Wall Street futures point to an opening with an average drop of 1.20%. The negative climate continues to support the dollar in the market.
Previously, EUR/USD declines had a supportive factor in the higher spread between European and US bonds. Monetary tightening expectations by the European Central Bank softened. Germany’s 10-year bond yields 1.39% (down more than 8% on Thursday).
Another factor that gave more weight to EUR/USD was technical. The failure to recover 1.0600, coupled with the break of 1.0500 and 1.0470 enabled an acceleration to the downside. On the downside, 1.0400 is again a support to consider and then 1.0380; the last strong defense of 1.0350.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.