EUR/USD slumps to multi-week lows below 1.2150
- EUR/USD continues to push lower in the American session.
- Upbeat data releases from US help greenback outperform its rivals.
- US Dollar Index extends rally to fresh multi-week highs near 90.50.
The EUR/USD pair came under strong bearish pressure during the American session on Thursday and touched its lowest level since May 17 at 1.2130. As of writing, the pair was down 0.6% on the day at 1.2135.
USD capitalizes on great US data
Following the key macroeconomic data releases from the US, the greenback gathered strength against its rivals and the US Dollar Index (DXY) reached a three-week high of 90.47. At the moment, the DXY is rising 0.61% on a daily basis at 90.45.
The data published by the Automatic Data Processing (ADP) Research Institute showed on Thursday that private sector employment increased by 978,000 in May, compared to the market expectation of 654,000. Additionally, the weekly Initial Jobless Claims declined to 385,000 from 405,000.
Finally, the Markit Services PMI and the ISM Services PMI both notched new series highs of 70.4 and 64, respectively, in May. Furthermore, the Prices Paid Index component of the ISM PMI report surged to its strongest level in nearly 15 years 80.6 to revive inflation concerns. Currently, the 10-year US Treasury bond yield is up 1.8% at 1.616%, providing an additional boost to the USD.
Meanwhile, Wall Street's main indexes are losing between 0.4% and 1.3%, allowing the greenback to preserve its strength.
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.
