EUR/USD consolidates daily losses, looks to close below 1,1700
- EUR/USD touched its lowest level since November at 1.1666 on Thursday.
- US Dollar Index stays in the positive territory near 92.50.
- Market mood remains sour despite upbeat US Jobless Claims data.
The EUR/USD pair broke below 1.1700 for the first time in 2021 and reached its lowest level since November at 1.1666 on Thursday. With the greenback preserving its strength in the second half of the day, the pair is struggling to recover its losses and was last seen losing 0.2% on a daily basis at 1.1687.
DXY continues to push higher after FOMC Minutes
The decisive rally witnessed in the US Dollar Index (DXY) after the FOMC's July meeting minutes reaffirmed expectations for the Fed to start asset tapering before the end of the year weighed heavily on EUR/USD. The DXY, which reached its strongest level in more than nine months at 93.52, is currently up 0.36% at 93.49.
Additionally, the steep decline seen in major European equity indexes and Wall Street's poor performance helped the safe-haven USD outperform its risk-sensitive rivals.
Although the data published by the US Department of Labor revealed on Thursday that the Initial Jobless Claims fell to its lowest level since the beginning of the coronavirus pandemic at 348,000, it failed to help market mood improve.
There won't be any high-tier macroeconomic data releases on Friday and the market's risk perception alongside the USD's valuation are likely to continue to impact EUR/USD's movements.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
