- EUR/USD remains on track to close the day in the negative territory.
- US Dollar Index erases majority of Wednesday’s losses.
- EU’s EMA confirms AstraZeneca vaccine’s benefits outweigh risks.
The EUR/USD pair dropped to a daily low of 1.1909 in the early American session on Thursday and seems to be having a difficult time staging a convincing recovery. As of writing, the pair was down 0.45% on the day at 1.1925.
DXY closes in on 92.00
The renewed USD strength forced EUR/USD to reverse its direction after having gained more than 70 pips on Wednesday on the back of the US Federal Reserve’s dovish outlook.
Nevertheless, the US Treasury bond yields continue to push higher and provided a boost to the greenback. With the benchmark 10-year US T-bond yield rising more than 5%, the US Dollar Index (DXY) erased the majority of Wednesday’s losses and was last seen gaining 0.42% on a daily basis at 91.83.
Earlier in the day, the data from the US showed that the weekly Initial Jobless Claims rose to 770,000, compared to analysts’ estimate of 700,000. On a positive note, the Philadelphia Fed Manufacturing Index improved sharply to 51.8 in March and beat the market expectation of 23.1 by a wide margin. However, the market reaction to these figures remained relatively subdued.
On the other hand, the European Medicines Agency (EMA) reported on Thursday that they are still convinced that the benefits of AstraZeneca’s coronavirus vaccine outweigh the risks following their investigation into reports of blood clots.
There won’t be any significant macroeconomic data releases from the euro area nor the United States on Friday and the US T-bond yields are likely to continue to impact the USD’s market valuation.
Technical levels to watch for
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