EUR/USD Support at 1.08 Finally Breaks as US Buyers Accumulate
The dollar goes higher in European trade, demonstrating its strength once again in this session after the strong bullish run on Friday following the amazing NFP report. The Euro (EUR) and Pound (GBP) are down around 0.5% versus the USD so far on the day. Both are making a decisive move lower, as sellers pile in.
While EUR/USD is making a downward break of the major support zone around 1.08, GBP/USD appears to be following a similar pattern as it moves below 1.2600. This forex pair has been bouncing between 1.2600 and 1.2800 for almost two months now, but sellers now appear to be shaking it off the consolidation period.
US bonds continue to be sold as Treasury rates rise, following the price action from last Friday. As a result, the USD is gaining ground versus all currencies, with EUR/USD taking a shot below the 1.0750 level, printing a low of 1.0736 a while ago, breaking below the 100 daily moving average as well.
Eurozone February Report Released by Sentix – 5 February 2024
- Sentix February Investor Confidence:
- Actual: -12.9 points
- Expected: -15.0 points
- Previous (January): -15.8 points
- Expectations Component:
- Actual expectations: -5.5 points
- Previous expectations: -8.8 points
The report indicates an improvement in the investor sentiment which has risen for the fourth consecutive month in the Eurozone, reaching its highest level since April of last year. The expectations index also climbed for the sixth consecutive month, reaching its highest level since February of last year. While the recovery process is gradually progressing, Sentix reports that Germany is still in a “precarious” scenario.
Meanwhile, FED members are making hawkish comments all over the place today, with Goolsbee of the Federal Reserve telling Bloomberg that a March rate decrease is improbable. Minneapolis Fed President Neel Kashkari also popped in, saying that a higher neutral rate indicates that monetary policy may not be as tight as expected.
EUR/USD Live Chart
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