EUR/USD rebounds sharply to the 1.1750 area as DXY drops to weekly lows
- A weaker US dollar triggers an intraday recovery in EUR/USD.
- DXY hits weekly lows during the London fix, now falling for the third consecutive day.
The EUR/USD pair erased daily losses and rose to the 1.1750 area around the London fix, boosted by a USD selloff. Previously the pair bottomed at 1.1683 before rebound more than 50 pips in a few minutes. As of writing, it trades at 1.1740/45, flat for the day and near the weekly top.
The key driver of the move was a decline of the US dollar. The DXY fell to 93.78, reaching the lowest level since September 22. It is under pressure, amid a rally in equity prices in Wall Street and despite higher US yields. Stimulus hopes in the US are supporting stocks that are at two-week highs.
Market participants mostly ignored economic data from the US. The key report was the ADP employment report that showed private sector payroll rose by 749K in September, above expectations.
Despite rising versus the US dollar, the euro dropped further against the Swiss franc and the pound, reaching fresh daily lows.
Technical levels
Author
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.
