The EUR/USD pair is having a difficult time extending the bullish momentum into the US afternoon as the greenback is consolidating its daily losses. At the moment, the pair is trading at 1.0745, still up 0.32% on the day.
The US Dollar Index, supported by the rising U.S. Treasury yields, was able to correct above 99.50 in the last hour. As of writing, the 10-year T-bond yield was up 2.4, at 2.255%. The increasing risk appetite on Thursday seems to be the main reason behind rising yields as the macro data from the U.S. didn't receive any reactions from the market. The impact of improved risk sentiment could also be seen on the major U.S. equity indexes. The Dow Jones Industrial Average is up 0.85% while the S&P 500 is up 0.8%.
- US: Seasonally adjusted initial claims was 244,000, an increase of 10,000 from the previous week
- Philly Fed: Regional manufacturing activity continued to expand, but at a slower pace than last month
On the other hand, Germany's Finance Minister Wolfgang Schaeuble's latest comments might have downplayed the euro a bit as he argued that it would not be a bad idea if the ECB and other central banks began to follow the Fed example of a change in monetary policy direction.
Investors will look into the U.S. Treasury Secretary Mnuchin's remarks at the top of the hour for a fresh impetus.
The pair could face the initial hurdle at 1.0775 (daily high) ahead of 1.0800 (200-DMA/psychological level) and 1.0905 (Mar. 27 high). On the flip side, supports could be seen at 1.0710/00 (daily low/psychological level), 1.0640 (100-DMA) and 1.0570 (Apr. 10 low).