The Euro initially found support in yesterday’s trading session and was on track for its second straight day of gains against the US dollar before pulling back after another round of strong US data kept tapering hopes by the US Federal Reserve at the forefront.
The weekly long run of strong jobs data continued to hit the market with the Initial jobless claims figure coming in as expected at 375K, while the continuing claims numbers fell under 3 million for the first time since the coronavirus appeared and decimated the economy.
From a business perspective, the news was also good with the release of the producer price index which came in at 1% against analysts’ expectations for a figure of 0.5%.
Data from the Eurozone showed a different story with the release of the latest industrial production figures that came in at -0.3% against market consensus for a number of -0.2% which showed once again the US economy seems to be ahead with regards to economic recovery.
The Euro has recovered somewhat in today’s trading session and with no meaningful data due for release from the Eurozone, investors will await the release of the Michigan consumer sediment index from the US as this will be the main driver of the EUR/USD currency pair to close out the week.
A new resistance line has formed over the last 4 trading sessions at $1.1737 which is once again keeping the Euro subdued in today’s trading session.
The $1.1710 mark is the current support level for the EUR/USD currency pair which is likely to be tested as we head into the US trading session and market participants brace for the outcome of the Michigan consumer sediment index.