The single currency remains under pressure these days, with the EURUSD is on track to finish the week in the negative territory after three weeks of gains. The price slipped to multiday lows of 1.1625 and now threatens the 1.16 threshold as the sentiment around the buck remains upbeat.
The pair managed to bounce from lows yesterday, but failed to get back above the 1.17 key figure despite the US CPI data came out mixed. The greenback received a local boost from positive comments by the Fed chair Powell who said the country’s economy is in good place at the moment. The overall USD bullishness still comes from safe haven demand amid trade war jitters, as well as from Fed’s tightening path in contrast with the uncertain outlook for the ECB policy.
The technicals point to the lingering downside risks in the short term, with the immediate outlook has worsened following a break below the 1.1650 support one. However, should the greenback fail to receive the additional bullish boost in the nearest future, the pair may well stay above the 1.16 area.
By Helen Rush
Senior Analyst at Capital Markets