EUR/USD rebounds sharply to the 1.1750 area as DXY drops to weekly lows
|- A weaker US dollar triggers an intraday recovery in EUR/USD.
- DXY hits weekly lows during the London fix, now falling for the third consecutive day.
The EUR/USD pair erased daily losses and rose to the 1.1750 area around the London fix, boosted by a USD selloff. Previously the pair bottomed at 1.1683 before rebound more than 50 pips in a few minutes. As of writing, it trades at 1.1740/45, flat for the day and near the weekly top.
The key driver of the move was a decline of the US dollar. The DXY fell to 93.78, reaching the lowest level since September 22. It is under pressure, amid a rally in equity prices in Wall Street and despite higher US yields. Stimulus hopes in the US are supporting stocks that are at two-week highs.
Market participants mostly ignored economic data from the US. The key report was the ADP employment report that showed private sector payroll rose by 749K in September, above expectations.
Despite rising versus the US dollar, the euro dropped further against the Swiss franc and the pound, reaching fresh daily lows.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.