Forex News

EUR/USD prints fresh weekly lows near 1.0800 on US dollar strength

  • Euro holds to losses versus USD, GBP and CHF. 
  • US Dollar Index rises back above 100.00, despite terrible US data. 

The EUR/USD pair move further to the downside during the second the half of the American session and hit a fresh one-week low at 1.0818. Near the end of the day, it is trading at 1.0845/50, 110 pips below Wednesday’s close. The euro is about to post the fourth decline in a row. 

The US Dollar rose across the board, even against the yen and despite US data. The DXY rose back above 100.00 to the highest in a week boosting EUR/USD. Regarding data, US initial jobless claims surged to 6.65 million, a new record after last week’s rise to 3.3 million. The report shows the impact of the coronavirus on employment. On Friday, the official March employment report is due. Data for the report is recollected until mid-March so the numbers could not be as bad as claims suggest. Also the ISM non-manufacturing report is due. In Europe and the US the final reading of Markit Services PMI will be release.

Wall Street was hit by the surge in claims but then turned back into positive territory following another leg higher in crude oil prices. The WTI barrel ended with a gain of more than 20%, on expectations of a global cut in production. 

The euro dropped not only against the US dollar, but it was also the weakest among European majors. EUR/GBP fell more than a hundred pips to 0.8750, the lowest in three weeks. EUR/CHF hit one-week lows at 1.0545, the decline was probably limited by intervention from the Swiss National Bank. 

Technical levels 
 

 

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