EURUSD holds above the key SMAs, trying to confirm the recent break above the 1.0900 figure
The euro came off local lows to turn positive on Thursday after a two-day slide from early-August highs seen around 1.0965 this week. The pair is changing hands around the 1.0900 figure that remains in the market focus as the shared currency keeps clinging to the upper end of the extended trading range amid signs of weakness surrounding the US dollar.
The greenback is back under pressure today after a two-day recovery from fresh late-August lows registered around 103.20 earlier in the week. As such, the USD index struggles to shrug off last week’s selling pressure in the aftermath of a weaker-than-expected US inflation report.
After finding support around the mentioned lows, the USD erased some losses, staying on the defensive, however. The US currency struggles to attract more decisive buying interest as traders remain cautious in holiday trading. The DXY is oscillating around 103.60-103.70 during the European deals, looking modestly downbeat, with risk sentiment mixed in the global financial markets.
On the positive side, EURUSD holds above the key SMAs, trying to confirm the recent break above the 1.0900 figure. Still, downside risks continue to persist while below the 1.10 mark last seen in August. On the weekly timeframes, the euro has been bullish since mid-October.
In a wider picture, the shared currency could receive a boost if the greenback continues to give up gains on a softer tone from the Federal Reserve. So far, however, the US central bank refrains from signaling intention to cut rates any time soon. Should the upcoming data out of the US continue to disappoint, the Fed will have to deliver a more dovish stance towards interest rates.