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EUR/USD pauses its two-day rise as the dollar steadies

EUR/USD was around 1.1457, while the US Dollar Index held near 100.60 after falling to 100.35 on Wednesday.

Reported · Written up by our desk · Major Pairs

EUR/USD traded with a downside bias on Thursday, snapping a two-day winning streak as the US dollar steadied after weaker-than-expected US inflation data, FXStreet reported. The pair was around 1.1457, down modestly on the day.

Market sentiment stayed fragile as renewed Middle East tensions pushed oil prices higher, which could limit the downside in the dollar. Traders also continued to expect a Federal Reserve interest rate hike later this year.

The US Dollar Index, which tracks the greenback versus a basket of six major currencies, was around 100.60 after dipping to 100.35 on Wednesday, its lowest level since June 18. Additional support for the dollar came after initial jobless claims fell to 208K in the week ending July 11, below the 217K forecast.

FXStreet also pointed to US data and geopolitics, including retail sales up 0.2% month over month in June and a fifth consecutive round of US strikes against Iranian targets. Reuters cited sources saying Iran instructed Yemen’s Houthis to close the Bab el-Mandeb gateway to the Red Sea if the US attacks its power network, while WTI was near $80 and up about 12% for the week.

Latest closeWTI crude $80.18 ▲1.1%|EUR/USD 1.147 ▲0.8%|Dollar index 100.50 ▼0.4%

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