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USD drops further late on Friday extending weekly losses

  • US Dollar weakness further as stocks jump in Wall Street.
  • Crude oil prices rise by more than 2%, Gold breaks above $1,850.
  • US bonds extend recovery ahead of NFP week.

The US Dollar dropped further late on Friday with EUR/USD reaching fresh highs above 1.0630 and GBP/USD soaring above 1.2000. Risk appetite and a recovery in Treasuries weighed on the Dollar.

Dollar adds to weekly losses in the American session

The DXY broke below European session lows late on Friday and fell below 104.50 as stocks on Wall Street rose further. The Dow Jones was on its way to gain more than 1% and the Nasdaq was up by almost 2%.

In a low liquidity environment, risk appetite pushed the Dollar further lower. After a positive February, the Greenback posted the first weekly loss in a month even as US yields held near monthly highs and after upbeat US economic data.

The Pound gained momentum with GBP/USD soaring toward 1.2050. EUR/GBP trimmed weekly losses falling below 0.8830. EUR/USD rose above 1.0630 while USD/JPY fell to two-day lows below 135.80. Emerging market currencies also appreciated during Friday’s American session. USD/MXN dropped further below 18.00, to test 2018 lows.

Gold broke above $1,850 to the highest level in two weeks. Silver rose to $21.25, the strongest level since February 24. US yields pulled back further with the 10-year to 3.96%.

DXY Technical levels

 

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