EUR/USD's recovery extends beyond 0.9800 as the US dollar loses momentum


  • The euro picks up and returns to levels above 0.9800.
  • Speculation about a shorter Fed hike in December has hit the USD.
  • EUR/USD seen declining to 0.9300 in Q1 2023 – Nordea.

The euro has shrugged off the previous sessions' weakness during Friday’s US trading. The pair has regained lost ground after bouncing at 0.9705 lows earlier today and is struggling to consolidate above 0.9800 at the moment of writing.

The US dollar dives with all eyes on the Fed

A news report by the Wall Street Journal pointed out on Friday that Federal Reserve officials are likely to open a debate on how to signal a smaller rate hike in December. The US dollar has reacted with a sharp reversal from session highs. 

The US Dollar index, which measures the value of the US dollar against a basket of the world’s most traded currencies, has plummeted more than 1%, from three-week highs near 114.00, to the mid-range of 112.00.

WSJ’s report has offset the positive impact on the US dollar generated by the hawkish tone of the Fed officials' recent comments. Philadelphia Fed President Patrick Harker reiterated on Thursday that the bank will "keep raising rates for a while."

Beyond that, initial jobless claims increased below expectations last week, according to data released on Thursday,  confirming the tight labor market conditions and paving the path for the Fed to maintain its aggressive tightening cycle.

EUR/USD, seen bottoming at 0.9300 during Q1 2023 – Nordea

Currency analysts at Nordea expect the euro to continue depreciating to hit 0.9300 in 2023: “We believe the USD will continue to do well in the months to come due to the hawkish Fed conducting the fastest rate hikes in decades, a resilient US economy, and USD’s safe haven in these troubling times. This will bring EUR/USD to 0.93 during Q1.”

Technical levels to watch

EUR/USD

Overview
Today last price 0.9802
Today Daily Change 0.0015
Today Daily Change % 0.15
Today daily open 0.9787
 
Trends
Daily SMA20 0.9767
Daily SMA50 0.9913
Daily SMA100 1.0125
Daily SMA200 1.0547
 
Levels
Previous Daily High 0.9846
Previous Daily Low 0.9755
Previous Weekly High 0.9809
Previous Weekly Low 0.9632
Previous Monthly High 1.0198
Previous Monthly Low 0.9536
Daily Fibonacci 38.2% 0.9811
Daily Fibonacci 61.8% 0.9789
Daily Pivot Point S1 0.9746
Daily Pivot Point S2 0.9705
Daily Pivot Point S3 0.9655
Daily Pivot Point R1 0.9837
Daily Pivot Point R2 0.9887
Daily Pivot Point R3 0.9928

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD clings to daily gains above 1.0650

EUR/USD clings to daily gains above 1.0650

EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.

EUR/USD News

GBP/USD recovers toward 1.2450 after UK Retail Sales data

GBP/USD recovers toward 1.2450 after UK Retail Sales data

GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.

GBP/USD News

Gold holds steady at around $2,380 following earlier spike

Gold holds steady at around $2,380 following earlier spike

Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.

Gold News

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium

Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in

Bitcoin price shows no signs of directional bias while it holds above  $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research. 

Read more

Week ahead – US GDP and BoJ decision on top of next week’s agenda

Week ahead – US GDP and BoJ decision on top of next week’s agenda

US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.

Read more

Forex MAJORS

Cryptocurrencies

Signatures