Euro fades below 1.1700 as US Dollar rebounds on yields
The Euro remains steady below 1.1700 after failing to hold gains above it, despite hitting a three-month high. Broad US Dollar strength kept EUR/USD from ending Thursday’s session above the 1.1700 mark, with the pair finishing at around familiar levels, unchanged from Thursday’s opening price.
The Euro slipped below 1.1700 as the US Dollar bounced, driven by rising US Treasury yields. Despite reaching a three-month high, EUR/USD failed to surpass the key level again on Thursday, settling near prior levels. The US Dollar's surge was fueled by an increase in long-term bond purchases from the US Treasury, from $2 billion to $4 billion.
The US Dollar Index rose 0.10% to 98.84. The Euro's drop prevented it from challenging the 1.1800 mark, which had been reached on April 17. Solid US jobless claims and mixed Fed officials' comments underscored the strength of the labor market. Meanwhile, Eurozone Producer Price Index data surpassed expectations. Technical analysis suggests a bullish near-term trend for EUR/USD, with a notable resistance at 1.1849 and support at 1.1681 and 1.1456. Markets experts are awaiting key economic data releases.
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