- Greenback gains momentum amid risk version but lower US yields limit upside.
- EUR/USD heads for a modest weekly loss, without reaching fresh YTD lows.
The EUR/USD weakened during the American session and fell to 1.1266, reaching the lowest level since Tuesday. It then rebounded toward 1.1300 trimming losses. The decline took place amid a rally of the US dollar across the board, but the decline in US yields limited the upside of the greenback.
US economic data and Fed’s monetary policy expectations boosted the greenback on Friday. The US Employment report showed mixed data and later, service sector numbers (ISM And PMI) came in above expectations.
“The FOMC will clearly be discussing a faster taper at its upcoming December 15 meeting, but this morning’s payroll number and lighter read on average hourly earnings growth gives the Committee an out to perhaps punt to its January meeting”, mentioned analysts at Wells Fargo.
The EUR/USD is about to end the week with a modest decline. The positive for the euro is that it did not reach new YTD lows for the first time after four weeks in arrow. Price continues to consolidate around 1.1300, still in a downtrend but showing signs of consolidation in the short-term.