- The EUR/USD tapped into 1.0615 after an appearance from Fed Chair Powell sent the Greenback wobbling.
- The post-reaction markets are eating away at the knee-jerk gains, but the Euro remains firmly well-bid for Thursday.
- US Initial Jobless Claims came in better than expected, helping to improve investor sentiment.
The EUR/USD saw a fast spike into 1.0616 after optimistic talking points from Federal Reserve (Fed) Chairman Jerome Powell. Markets have largely absorbed the Fed-fueled reaction, and the Euro (EUR) remains near pre-Fed intraday highs as the US Dollar (USD) takes a light step back for Thursday.
Market risk appetite is improving on the day, keeping the USD on the low end as investors step back into risk assets.
Breaking: Jerome Powell says higher yields can have implications for policy
US Initial Jobless Claims beat expectations, showing just 198K new jobless benefits seekers for the week into October 13th versus the expected 212K, though the previous week's figure was revised from 209K to 211K.
Fed appearances certainly aren't done this week, with an additional five Fed official appearances over the next 24 hours.
EUR/USD Technical Outlook
Thursday's momentary Fed-fueled pop to the upside sees the EUR/USD toying with chart territory just north of a firmly descending trendline from 1.1275, and a sustained break will see the pair set for additional topside and free to take a run at the 50-day Simple Moving Average (SMA) near 1.0700.
On the low side, the last swing low into 1.0500 sits nearby as technical support, with a break of that level opening up the way for a further bearish run into 2023's lows near 1.0450.
EUR/USD Daily Chart
EUR/USD Technical Levels
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats from daily highs, holds above 1.0800
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.