Home›Forex›Major Pairs›EUR/USD slips from three-month high as dollar stabilis…

EUR/USD slips from three-month high as dollar stabilises

EUR/USD was last around 1.1686 after topping 1.1710, while US Initial Jobless Claims fell to 206K in the week ending August 15.

Reported · Written up by our desk · Major Pairs

EUR/USD trimmed gains on Thursday as the US dollar stabilised after a sharp selloff the prior day, after the pair hit an intraday high of 1.1710, its highest level since May 14. At the time of writing, the euro was trading around 1.1686.

The dollar received support from a rebound in US Treasury yields following Wednesday’s steep pullback, which was linked to the US Treasury Department announcing larger liquidity-support buybacks for longer-dated government securities. DBS Group Research strategist Chang Wei Liang said the additional buybacks are very small and there is no change in monetary policy, so the USD is more likely to consolidate than extend its recent decline.

The US labor market also helped support the greenback, with Initial Jobless Claims falling to 206K in the week ending August 15, below expectations of 210K and an upwardly revised prior reading of 212K. Looking ahead, FXStreet said markets are positioning for different central bank paths, with the Fed expected to hold rates steady and the ECB expected to raise rates again next month amid energy-driven inflation risks.

FXStreet also noted that geopolitical energy pressures, including the US-Iran stalemate restricting shipping through the Strait of Hormuz, are feeding into inflation concerns as traders weigh the next policy decisions.

Latest closeEUR/USD 1.157 ▲0.4%

More like this

Sources