EUR/USD consolidates daily and weekly gains above 1.1300
- Euro holds firm above 1.1300, consolidating below 1.1330.
- US dollar down across the board amid risk appetite and despite higher US yields.
The EUR/USD pair is trading in a range between 1.1300 and 1.1330, consolidating significant weekly gains on a quiet American session ahead of the weekend.
Dollar down, EUR/USD breaks 1.1300
Earlier today, EUR/USD broke above 1.1295 and jumped to 1.1322, reaching the highest level since March 22. Since then the pair has been moving between day’s top and 1.1300, holding firm to recent gains.
The pair was boosted by risk appetite that weakened the greenback in the market. EZ data helped the Euro while in the US, the Consumer Confidence preliminary report came in at 96.9, below the 98 expected.
The US dollar failed to benefit from higher US yields. The 10-year rose today to 2.55%, the highest in three weeks. The bond market supported the rally in USD/JPY to 112.00 and EUR/JPY that is gaining a hundred pips.
Best week in months for the Euro
The Euro is having the best weekly performance against the US dollar in months. The European Central Bank meeting, according to market analysts, was “dovish” and left the door open to more policy easing. Despite the outcome of the meeting, the Euro weakened only for a few hours and then bounced to the upside, breaking key levels versus the US dollar. The latest round of EZ economic reports surpassed expectations adding to Euro's strength.
Regarding the dollar, economic data from the US came in mixed, far from rising expectations about a rate hike from the Fed, but enough to offset rate cut talks. Also the improvement in risk sentiment weighed on the US Dollar.
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Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
