EUR/USD hits fresh lows under 1.1030 as dollar strengthens
|- EUR/USD falls on Friday on stronger dollar, sill up for the week.
- Mixed US March data: no surprises from employment, unexpected decline in the ISM Manufacturing PMI.
- Wall Street indices trim gains; European markets hold onto modest gains.
The EUR/USD dropped further and printed a fresh three-day low during the American session at 1.1026 as the US dollar gained momentum. The bias remains to the downside with the pair set to keep trimming weekly gains.
Dollar up after NFP, despite ISM
The US dollar strengthened after the beginning of the American session as market sentiment deteriorated with US stock indices trimming gains. Economic data from the US came in mixed but overall it appears to have helped the dollar.
The ISM Manufacturing index unexpectedly dropped to 57.1 in March, from 58.6; on the contrary, the S&P Global PMI was revised higher from 58.5 to 58.8. Earlier, the employment report showed the economy created 431K jobs in March, below the 490K expected, while the unemployment rate declined to the lowest since 2020 to 3.6%.
“A solid report does not change the dial for USD dynamics. If anything, this number should help validate market pricing for robust Fed tightening and our bias this quarter of fading EUR/USD extremes (within 1.08/12),” wrote TD Securities analysts.
EUR ends week on a negative tone
Despite losing ground on Friday for the second day in a row, EUR/USD is still up for the week. From Thursday’s top, it lost more than a hundred pips. So far it bottomed at 1.1026 and remains under pressure.
The dollar is set to end the week with losses, but not weak. The DXY is up 0.35% on Friday trading at 98.70, validating a recovery after trading under 98.00 during the previous two days.
Technical levels
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