EUR/USD extends gains, hits fresh daily highs as the US Dollar eases
EUR/USD has retraced previous losses during Friday's European session and returned to 1.1550 at the time of writing after bottoming at 1.1530 earlier on the day. Markets, however, are lacking a clear direction, and the pair is on track for a flat weekly performance, 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, has given away gains, turning negative on daily charts, which is providing some support to the common currency. Investors, however, remain wary of risk following another sell-off on Wall Street on Thursday, which might weigh on EUR/USD rallies.
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, ahead of the Michigan Consumer Sentiment Index, as the US government shutdown will delay the key Nonfarm Payrolls (NFP) report for the second consecutive month.
Source : Fxstreet.com
