EUR/USD holds previous losses ahead of US Consumer Sentiment data

EUR/USD bounces up from 1.1765 lows, but remains capped below 1.1800.
A cautious market mood and weak German Industrial data are weighing on the Euro.
The ECB kept rates on hold and signalled a steady monetary policy on Thursday.

The Euro (EUR) ticks up against the US Dollar (USD) on Friday, trading near 1.1800 at the time of writing after hitting fresh two-week lows of 1.1765 earlier on the day. The sell-off in Equity markets has cast an overall risk-averse sentiment that is buoying the safe-haven Greenback, while in Europe, German Industrial Production disappointed.

The US Dollar remains supported amid a global rout on Equities, with the tech sector leading losses amid growing market concerns about aggressive spending on Artificial Intelligence (AI). The risk-off mood has offset the impact of a string of downbeat US employment figures, which adds pressure on the Federal Reserve (Fed) to provide further support to employment creation.

On Thursday, the European Central Bank (ECB) stood pat on interest rates, as widely expected, and dismissed concerns about Euro strength, pointing to a steady monetary policy for the foreseeable future.

The focus on Friday preliminary Michigan Consumer Sentiment Index and the speech of Fed Governor Philip Jefferson during the US trading session. The crucial US Nonfarm Payrolls (NFP) report has been delayed for next week due to a partial government shutdown.