The EUR/USD pair is attracting some bearish buyers during the Asian session on Friday and recovering part of the previous day’s correction pullback from the 1.1680 area, or the highest level since October 17. Spot prices are currently trading around the mid-1.1600s and remain on track to record gains for the second week in a row.
Despite upbeat US labor market reports released on Thursday, the US Dollar (USD) is struggling to benefit from an overnight rebound from a six-week low amid dovish outlook from the Federal Reserve (Fed). In fact, traders now expect a roughly 85% chance that the US central bank will cut borrowing costs again next week. This, coupled with underlying bullish sentiment, is seen as undermining the US dollar’s relative safe haven status and acting as a tailwind for EUR/USD.
On the other hand, the common currency continues to draw support from the growing acceptance that the European Central Bank is done cutting interest rates. These expectations were confirmed by European Central Bank President Christine Lagarde’s comment earlier this week, saying that the central bank expects inflation to remain close to its 2% target in the coming months. This strengthens the case for policy stability, supporting the case for further near-term upward movement in EUR/USD.
Even from a technical perspective, the emergence of new buying on Friday validates this week’s breakout and the 100-day Simple Moving Average (SMA) and reaffirms the positive outlook. However, traders may refrain from placing aggressive bets and choose to wait for the release of the US PCE price index. Important data may provide signals about the path of interest rate cuts by the Fed, which would provide new momentum for the dollar and EUR/USD.
US dollar price last 7 days
The table below shows the percentage change in the US Dollar (USD) against the major currencies listed in the last 7 days. The US dollar was the strongest against the Swiss franc.
| US dollars | euro | GBP | JPY | Canadian | Australian dollar | New Zealand dollar | Swiss franc | |
|---|---|---|---|---|---|---|---|---|
| US dollars | -0.50% | -0.72% | -0.81% | -0.57% | -1.30% | -0.80% | -0.23% | |
| euro | 0.50% | -0.22% | -0.33% | -0.07% | -0.79% | -0.30% | 0.27% | |
| GBP | 0.72% | 0.22% | -0.10% | 0.15% | -0.57% | -0.09% | 0.49% | |
| JPY | 0.81% | 0.33% | 0.10% | 0.24% | -0.49% | 0.00% | 0.58% | |
| Canadian | 0.57% | 0.07% | -0.15% | -0.24% | -0.74% | -0.26% | 0.34% | |
| Australian dollar | 1.30% | 0.79% | 0.57% | 0.49% | 0.74% | 0.49% | 1.08% | |
| New Zealand dollar | 0.80% | 0.30% | 0.09% | -0.00% | 0.26% | -0.49% | 0.58% | |
| Swiss franc | 0.23% | -0.27% | -0.49% | -0.58% | -0.34% | -1.08% | -0.58% |
The heat map shows the percentage changes in major currencies versus each other. The base currency is chosen from the left column, while the counter currency is chosen from the top row. For example, if you select USD from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
