US dollar reverses late on Friday and turns negative.US yields off highs following the Consumer Sentiment report.EUR/USD is about to end the week with minor changes.
The EUR/USD rose from 0.9970 and climbed to 1.0035, hitting the highest level since Tuesday amid a reversal of the US dollar across the board following University of Michigan’s Consumer Sentiment report.
On European hours, the EUR/USD hit the lowest level in a week under 0.9950 and a few hours later printed a multi-day high, driven by a weaker dollar, affected by UoM Consumer Sentiment. The main index rose to 59.2, below the 60 of market consensus.The key numbers were inflation expectations that dropped across the curve.
The key event ahead is the FOMC decision on Wednesday. A 75 basis points rate hike is expected. The decision, the dot plot and the tone of the Fed will likely determine the next direction of the EUR/USD.
“EUR/USD weekly chart
The EUR/USD is about to end the week flat. The trend in the pair is clearly bearish, but so far, it has been able to remain above 0.9850/0.9900. If the euro manages to post a close above 1.0070, it could alleviate the negative pressure. The following level is the 1.0300 area that contains the 20-week moving average. On the flip side, support is located at 0.9910, followed by 0.9860 and 0.9730. 1.0053
GBP/USD climbs above 1.1400 as dollar loses strength
GBP/USD managed to stage a rebound from the multi-decade low it touched at 1.1350 earlier in the day and rose above 1.1400. The renewed dollar weakness following the UoM Consumer Sentiment Survey fuels the pair’s recovery ahead of the weekend.
EUR/USD extends rebound beyond parity
EUR/USD has gathered recovery momentum and climbed above parity during the American trading hours on Friday. The greenback stays on the backfoot amid week-end flows and the soft inflation components of the UoM survey, allowing the pair to push higher.
Gold rises toward $1,680 as US yields edge lower
Gold gained traction and turned positive on the day above $1,670 in the American session on Friday. The UOM’s Consumer Sentiment Survey showed declines in one-year and five-year inflation expectations, causing US yields to push lower and lifting XAU/USD.