EUR/USD climbs above 1.1760 as DXY slides to 92.80
|- EUR/USD extends daily rebound into the American session.
- US Dollar Index edges lower ahead of consumer confidence data.
- Falling US Treasury bond yields seem to be weighing on USD.
After spending the first half of the day fluctuating in a narrow band below 1.1750, the EUR/USD pair gained traction in the early American session and was last seen gaining 0.3% on the day at 1.1763.
DXY turns south ahead of consumer confidence data
The renewed USD weakness seems to be fueling EUR/USD upside. The US Dollar Index (DXY), which posted modest daily gains and closed near 93.00 on Thursday, is currently down 0.2% on the day at 92.82. In the absence of high-tier data releases and fundamental developments, falling US Treasury bond yields are making it difficult for the greenback to find demand. As of writing, the benchmark 10-year US T-bond yield was down 1% at 1.346%.
Later in the session, the University of Michigan's preliminary Consumer Sentiment Index data for August will be looked upon for fresh impetus.
On the other hand, the data published by Eurostat showed earlier in the day that the eurozone posted a trade surplus of €12.4 billion (seasonally adjusted), coming in better than the market expectation of €9.3 billion.
In the meantime, the S&P Futures continue to trade flat on the day, suggesting that the USD's market valuation is likely to be impacted by T-bond yields ahead of the weekend.
Technical levels to watch for
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