EURUSD: Dives despite weak US data and plummeting yields
|The EUR/USD pair was down half a percent on Friday afternoon and was trading below the 1.21 level during the US session, which are one-month lows for this pair.
Earlier in the day, US retail sales declined for the third straight month in December, sliding 0.7% month-on-month versus 0.0% expected. Online retail sales cratered 5.8% on a monthly basis.
Moreover, the University of Michigan sentiment survey disappointed as well as the gauge of current conditions fell 2.3 points to 87.7, while a measure of expectations dropped 0.8 points to 73.8.
More bad news came from the US pharmaceutical company Pfizer, which confirmed it would temporarily reduce deliveries to Europe of its COVID-19 vaccine. At the same time, it upgrades production capacity to 2 billion doses per year.
Traders rushed to safe havens amid the risk-off sentiment - the greenback strengthened, and so did the US Treasurys. The 10-yield was down more than 3%, approaching the 1% threshold from the upside.
The next key support for the eurodollar pair seems to be in the area of the previous highs between 1.1960 and 1.20.
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