EUR/USD stays below 1.1750, looks to close modestly higher
- EUR/USD lost its momentum after rising to a 10-day high.
- EU finance minister will reportedly discuss euro exchange rate next week.
- US Dollar Index looks to close flat near 93.880 after US data.
The EUR/USD pair rose to its highest level since September 22nd at 1.1770 during the European session on Thursday but struggled to preserve its bullish momentum. As of writing, the pair was up 0.15% on the day at 1.1736.
DXY pares early losses, stays below 94.00
Earlier in the day, the broad-based USD weakness helped EUR/USD push higher. However, the risk-averse market environment, as reflected by the dismal performance of Wall Street's main indexes, helped the greenback recovery its losses. At the moment, the S&P 500 Index, which rose more than 1% after the opening bell, is flat on the day at 3,364 and the US Dollar Index (DXY) is virtually unchanged at 93.80.
The data published by the Eurostat showed on Thursday that the Unemployment Rate in the euro area ticked up to 8.1% as expected. Meanwhile, citing a senior EU official, Reuters reported that eurozone finance ministers were planning to discuss the developments surrounding the euro exchange rate next week. Nevertheless, the shared currency largely ignored this report and continued to outperform its rivals during the first half of the day.
On the other hand, the US data revealed that the business activity in the manufacturing sector continued to expand in September with the IHS Markit's and the ISM's Manufacturing PMIs arriving at 53.2 and 55.4, respectively.
On Friday, the Consumer Price Index (CPI) from the euro area and the Nonfarm Payrolls (NFP) from the US will be watched closely by the market participants.
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.
