EUR/USD hits fresh multi-week lows near 1.1070
- Quit session across financial markets amid US holiday.
- EUR/USD holds bearish tone, posts modest losses.
The EUR/USD pair dropped further during the American session and bottomed at 1.1075, the lowest intraday level since December 24. As of writing, it trades at 1.1080/85, less than 10 pips below Friday’s close.
The euro heads for the third consecutive loss and the lowest daily close in a month. It is consolidating below the 20 and 55-day moving averages, holding a firm negative tone.
The decline on Monday so far has been limited amid a quiet session. Wall Street remains closed on Martin Luther King Jr. Day. The greenback is mostly higher across the board. The US Dollar Index gains modestly, and is at 97.70, the strongest level in almost a month. Economic data from the US and monetary policy expectations have been offering support to the greenback over the last session.
“The euro is continuing to consolidate at lower levels against the US dollar. It has traded within a narrow range between 1.1000 and 1.1200 since mid-0ctober. The economic data flow from the euro-zone has been surprising to the upside but has notbeen sufficient yet to encourage a stronger euro. Leading indicators are signalling that the outlook for the euro-zone economy is improving. However, they have not been back up yet by a convincing upturn in the hard economic activity data from the end of last year”, explained MUFG analysts. They expect EUR/USD to move with a neutral bias in the short-term, between 1.0900 and 1.1300.