EUR/USD trades with modest gains amid softer USD, remains below 1.1000 mark
|- EUR/USD attracts some buyers on Friday amid a modest US Dollar downdraft.
- Dovish Fed expectations and a positive risk tone weigh on the safe-haven buck.
- Bets for more ECB rate cuts could act as a headwind for the Euro and cap gains.
The EUR/USD pair builds on the previous day's late rebound from the 1.0950 area and gains some positive traction during the Asian session on Friday. Spot prices, however, struggle to capitalize on the uptick and currently trade around the 1.0975-1.0980 region, up just over 0.05% for the day.
A combination of factors prompts fresh selling around the US Dollar (USD), which, in turn, is seen lending some support to the EUR/USD pair. Despite Thursday's upbeat US macro data, investors seem convinced that the Federal Reserve (Fed) will begin its policy-easing cycle in September and have fully priced in a 25 basis rate cut. This, in turn, triggers a modest pullback in the US Treasury bond yields and exerts some downward pressure on the buck.
Apart from this, the prevalent risk-on mood – as depicted by a positive tone across the global equity markets – turns out to be another factor undermining demand for the safe-haven Greenback. That said, the risk of widening conflict in the Middle East could act as a tailwind for the USD. Apart from this, expectations that the European Central Bank (ECB) will cut rates again, amid declining inflation in the Eurozone, seem to cap gains for the EUR/USD pair.
Nevertheless, spot prices remain on track to register modest weekly gains. Moreover, the emergence of some dip-buying near the 1.0950 horizontal resistance-turned-support on Thursday warrants some caution before positioning for deeper losses. Traders now look to the US macro data – Building Starts, Housing Permits and the Preliminary Michigan Consumer Sentiment Index – for short-term opportunities later during the early North American session.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | -0.13% | -0.25% | -0.04% | -0.17% | -0.33% | -0.16% | |
| EUR | 0.08% | -0.06% | -0.18% | 0.02% | -0.13% | -0.38% | -0.06% | |
| GBP | 0.13% | 0.06% | -0.12% | 0.09% | -0.06% | -0.31% | -0.01% | |
| JPY | 0.25% | 0.18% | 0.12% | 0.27% | 0.08% | -0.18% | 0.10% | |
| CAD | 0.04% | -0.02% | -0.09% | -0.27% | -0.16% | -0.43% | -0.12% | |
| AUD | 0.17% | 0.13% | 0.06% | -0.08% | 0.16% | -0.26% | 0.03% | |
| NZD | 0.33% | 0.38% | 0.31% | 0.18% | 0.43% | 0.26% | 0.31% | |
| CHF | 0.16% | 0.06% | 0.01% | -0.10% | 0.12% | -0.03% | -0.31% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.