EUR/USD pulls back as risk appetite fades in choppy trading week
EUR/USD nudges down from weekly highs around 1.1550 and trades at 1.1535 in the early European session on Friday. The pair is flat on weekly charts after a choppy trading week, with Eurozone data showing mixed figures and investors flying blind due to the ongoing blackout of official US data.
The US Dollar Index (DXY), which measures the value of the USD against a basket of six majors, is picking up on Friday, with investors wary of risk following another sell-off on Wall Street on Thursday. Fears of an AI bubble hammered tech shares, and the risk aversion has spread through Asian markets, triggering a rush for safety that is underpinning the US Dollar.
On Thursday, a private employment report revealed that net employment declined in the US in October, offsetting the moderate enthusiasm seen after Wednesday's ADP data release and feeding hopes of a Federal Reserve (Fed) rate cut in December. The US Dollar extended its pullback from three-month highs.
On Friday's calendar, the focus will be on European Central Bank (ECB) and Fed speakers, as the US government shutdown will delay the key Nonfarm Payrolls (NFP) report for the second consecutive month.
Source : Fxstreet.com