EUR/USD tumbles amid stronger Dollar, drops below 1.1000
|- US Dollar strengthens on Friday after US data and Fed talk.
- EUR/USD drops 80 pips from top, but holds firm to weekly gains.
The EUR/USD is losing ground on Friday as the US Dollar recovers a part of recent losses. The pair reached a fresh daily low at 1.0987 moving away from the one-year lows it hit on European hours at 1.1075.
The US Dollar Index (DXY) is up by 0.50% on Friday, hovering around 101.50 following mixed US economic data. Comments from Federal Reserve officials and higher US yields helped the Dollar.
Fed Governor Christopher Waller said that the central bank has not made much progress on the inflation goal and argued rates need to rise further. In an interview with CNBC, Chicago Fed President Austan Goolsbee mentioned that “a mild recession is definitively on the table as a possibility.”
Economic data came in mixed, with lower-than-expected numbers from Retail Sales, but Industrial Production and University of Michigan’s Consumer Sentiment rose more than expected.
Following data and comments, US yields jumped. The 2-year Treasury yield rose from under 4% to 4.10% and the 10-year from 3.45% to 3.52%. Eurozone bond yields are also rising but at a slower pace.
Despite Friday’s reversal, EUR/USD is still on its way to the highest weekly close in a year. It is holding up, however, the retreat from the highs raises doubts about more gains for the next session.
Price is hovering around daily lows at 1.0990. The next support area is seen at 1.0970 followed by 1.0935. On the upside, 1.1040 could become the immediate resistance.
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.