- Broad-based USD weakness lifts EUR/USD higher.
- Consumer confidence deteriorates in December in the U.S.
- 10-year T-bond yield erases Wednesday’s gains.
After spending the majority of the day fluctuating below the 1.14 mark, the EUR/USD pair started to climb in the second half of the day and refreshed its weekly high at 1.1449. As of writing, the pair was trading at 1.1440, gaining 0.75%, or 85 pips, on the day.
The greenback’s market valuation seems to remain as the sole driver of the pair’s price action on Thursday. The European Central Bank’s Monthly Bulletin that was published earlier today didn’t offer anything new to the market participants as it repeated that a significant monetary policy stimulus was still needed and the downside risks were increasing despite an ongoing expansion in the economy.
Following a relatively quiet European session, the US Dollar Index came under pressure as the risk-off mood ramped up the demand for the U.S. Treasury bonds and weighed on their yield to hurt the greenback. As of writing, the 10-year reference was down nearly 1.5% on the day and the DXY was losing 0.5% at 96.55.
Meanwhile, The Conference Board today announced that the Consumer Confidence Index declined in December. Assessing the data, “Plunging equity markets unsurprisingly dragged confidence lower in December, but a strong jobs market, rising wages and lower fuel costs suggest there are plenty of positives for consumers at the start of 2019,” said ING analysts in a recently published report.
Technical levels to consider
The initial resistance for the pair aligns at 1.1465 (100-DMA) ahead of 1.1500 (psychological level) and 1.1550 (Oct. 22 high). On the downside, supports are located at 1.1375 (20-DMA), 1.1340 (Dec. 26 low) and 1.1275 (Nov. 27 low).
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