- EUR/USD is edging lower in late American session.
- US Dollar Index steadies around 93.00 following Powell’s remarks.
- Wall Street’s main indexes look to close in the negative territory.
The EUR/USD pair climbed to a daily high of 1.1823 during the American session on Thursday but lost its traction in the last hour as the souring market mood helped the greenback gather strength. As of writing, the EUR/USD pair was trading at 1.1800, still up 0.2% on the day.
DXY settles around 93.00 after early decline
While speaking at the European Central Bank Forum on Central Banking on Thursday, FOMC Chairman Jerome Powell said that the economic recovery has slowed and reiterated that the Fed and Congress will need to do more. Commenting on the latest developments surrounding COVID-19 vaccine candidates, Powell argued that it was too soon to assess the implications for the economy.
After starting the day mixed, Wall Street’s main indexes started to push lower in the last hour, reflecting a negative shift in market sentiment. At the moment, both the S&P 500 and the Dow Jones Industrial Average indexes are losing more than 1% on a daily basis.
In the meantime, risk-off flows provided a modest boost to the USD and the US Dollar Index (DXY) turned flat on the day a little above 93.00.
Earlier in the day, the data from the US showed that the Core Consumer Price Index (CPI) declined to 1.6% on a yearly basis in October and the Initial Jobless Claims fell by 48,000 to 709,000 in the week ending November 7th.
On Friday, Employment Change, Trade Balance, and Gross Domestic Product data will be featured in the European economic docket. Investors expect the European economy to show an annual contraction of 4.3% in the third quarter.
Technical levels to watch for
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