Euro gains against US dollar as economic data impacts currency markets
2023.11.17 14:10
© Reuters.
NEW YORK – The euro saw a slight uptick against the US dollar today, with the trading pair reaching 1.0883 amid a mix of economic indicators from both regions. The Eurozone’s current account results exceeded expectations, which provided some support to the single currency, while the US dollar struggled to gain ground following a set of weaker-than-anticipated economic reports.
Earlier today, the EUR/USD pair traded close to a stable level of approximately 1.0850. The subdued demand for the US dollar followed reports of an increase in US jobless claims to around 231,000 and a dip in industrial production by roughly half a percent in October. These figures contributed to declining US Treasury yields, with the benchmark tenure yield falling nearly one percent to about 4.4 percent.
Despite positive housing sector data released later in the day, the US dollar’s bearish trend persisted. This was largely due to the earlier disappointing economic results which continued to weigh on the currency.
On the technical front, the EUR/USD pair’s movements were confined within a range marked by 1.0887 and 1.0831 on the H1 chart. The currency pair rebounded from below the ascending pitchfork’s lower median line, indicating strong upward pressure. Analysts suggest that if EUR/USD maintains its position above this key technical level, there could be potential for further growth. A rise above today’s peak of 1.0892 would further signal bullish momentum for the pair.
The overall market mood was cautiously optimistic, with advances in European and US stock indices hinting at a favorable risk climate. The rose by 0.65 percent and US stock index futures increased by 0.2 percent, potentially contributing to EUR/USD’s aggregate weekly gains.
Market participants are also looking ahead to upcoming US Housing Starts and Building Permits data; however, broader risk sentiment is expected to continue playing a significant role in determining trading direction.
In summary, while short-term movements show a bullish bias for EUR/USD, traders remain vigilant as they navigate through mixed economic signals and await further data that could impact global currency markets.
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