EUR/USD is back above 1.1800 near the end of the week. The pair jumped after the US CPI report to 1.1834 reaching a 1-week high but then pulled back to 1.1775. At the moment is trading at 1.1815/20, up 45 pips for the day, headed toward the third gain in a row.
The greenback weakened across the board during the last hour and boosted the EUR/USD to the upside. The US dollar attempted to recover the ground it lost after inflation data but again is facing pressure. The DXY is back below 93.00, moving toward daily lows that reached at 92.83.
Economic data released today show that the Consumer Price Index rose in the US 0.1% in July, below the 0.2% expected. The number came in lower-than-expected like what happened yesterday with the PPI. After losing ground, the greenback recovered some lost ground particularly against the yen, supported by rising US bond yields.
EUR/USD: another weekly gain
EUR/USD is about to end the week marginally higher. It is the fifth weekly gain in row but the momentum is not as highs as it looks. Last week ended with a strong reversal on Friday, that started a correction. The retreated from 30-month highs continued until Wednesday.
Today’s rebound so far does not look significantly strong to resume the upside for a test of 1.1900. If the euro climbs above 1.1850, it would gain support to challenge 2017 highs.
Next week the key report in the US will be the FOMC minutes of the latest meeting. Market participants are likely to look for signals about the timing of the start of the balance sheet normalization.
In the Eurozone, the minutes of the European Central Bank meeting will be on focus for clues about the potential announcement of how will the QE program continue beyond December.
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