- US dollar reverses late on Friday and turns negative.
- US yields off highs following the Consumer Sentiment report.
- EUR/USD is about to end the week with minor changes.
The EUR/USD rose from 0.9970 and climbed to 1.0035, hitting the highest level since Tuesday amid a reversal of the US dollar across the board following University of Michigan's Consumer Sentiment report.
On European hours, the EUR/USD hit the lowest level in a week under 0.9950 and a few hours later printed a multi-day high, driven by a weaker dollar, affected by UoM Consumer Sentiment. The main index rose to 59.2, below the 60 of market consensus. The key numbers were inflation expectations that dropped across the curve.
The key event ahead is the FOMC decision on Wednesday. A 75 basis points rate hike is expected. The decision, the dot plot and the tone of the Fed will likely determine the next direction of the EUR/USD.
"Narrative shattered – US inflation is unrelenting, throwing the "Fed pivot" story up in the air and boosting the dollar. Europe's efforts to mitigate the energy crisis were insufficient to withstand the greenback's strength. All eyes are now on the world's most important central bank, with everything else playing second fiddle," said Yohay Elay, analyst at FXStreet.
EUR/USD weekly chart
The EUR/USD is about to end the week flat. The trend in the pair is clearly bearish, but so far, it has been able to remain above 0.9850/0.9900. If the euro manages to post a close above 1.0070, it could alleviate the negative pressure. The following level is the 1.0300 area that contains the 20-week moving average. On the flip side, support is located at 0.9910, followed by 0.9860 and 0.9730.
-637989381686688192.png)
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD hovers around 1.0800 ahead of NFP Premium
EUR/USD recovered from three-week lows and peaked at 1.0817. It is hovering around the 1.800 area. The pair rose on Thursday supported by a weaker US Dollar amid risk appetite. The focus turns to Friday’s NFP report.
USD/JPY remains volatile below 144.00 after Japan's GDP miss
USD/JPY is moving back and forth while below 144.00 in Friday's Asian trading. The pair recovered ground after Japan's Q3 GDP missed estimates. However, the Yen holds the upper hand against the US Dollar on hints of BoJ's policy pivot. US NFP awaited.
Gold eyes acceptance above $2,050 on dismal US Nonfarm Payrolls data Premium
Gold set new all-time highs this week at $2,144.48 in a hard bid rally early Monday, and the XAU/USD has spent the rest of the week in thin trading above $2,000 after paring away Monday’s opening gains. US NFP data is in focus for a fresh directional impetus.
Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000
Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the Bureau of Labor Statistics (BLS) of the United States. This time around, the NFP data is expected to cause a dip in the value of BTC.
US November Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises Premium
Historically, how impactful has the US jobs report been on gold’s valuation? In this article, we present results from a study in which we analyzed the XAU/USD pair's reaction to the previous 35 NFP prints*.