- Euro having the best day versus the US dollar since December.
- EUR/USD heads for first weekly close in over a month.
The EUR/USD pair rose further and printed a fresh weekly high at 1.1090. So far today it gained more than fifty pips, having the best daily performance since December. It holds firm near the top, slightly above the 20-day moving average around 1.1080.
A decline of the US dollar against majors boosted the EUR/USD pair. The US Dollar Index is falling for the second day in row, erasing the gains of the last two weeks. On Wednesday, DXY peaked at 98.20 and it stands at 97.46, the lowest in ten days. In Wall Street risk aversion dominates the trading session. The Dow Jones falls 1.40% and the Nasdaq 1.05%. The 10-year yield is at a three-month low at 1.52%, about to test October lows.
Despite falling versus majors during the American session, the greenback remains strong against emerging currencies on the back of the negative market sentiment prevailing.
Week ahead
After falling for five consecutive weeks, EUR/USD is about to post the first positive close. The pair started to rise after the FOMC meeting. However, fears about the economic impact of the coronavirus are the main driver for markets and will likely continue to be next week.
US economic data released over the week had a limited impact. Next week reports include the ISM manufacturing, housing data and the critical employment report on Friday. Analysts will look not only for the NFP number but also to wage trends. In the Eurozone, the December retail sales report will be released.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
GBP/USD consolidates above 1.2500, eyes on US PCE data
GBP/USD fluctuates at around 1.2500 in the European session on Friday following the three-day rebound. The PCE inflation data for March will be watched closely by market participants later in the day.
Gold clings to modest daily gains at around $2,350
Gold stays in positive territory at around $2,350 after closing in positive territory on Thursday. The benchmark 10-year US Treasury bond yield edges lower ahead of US PCE Price Index data, allowing XAU/USD to stretch higher.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.