- EUR/USD lost its recovery momentum after posting modest gains on Wednesday.
- US Dollar Index edges higher toward 93.00 on Thursday.
- Eyes on weekly Initial Jobless Claims and PPI data from US.
The broad-based USD weakness helped the EUR/USD pair stage a recovery and snap a six-day losing streak on Wednesday. On Thursday, however, the pair seems to be having a difficult time preserving its bullish momentum and was last seen trading flat on the day at 1.1736.
USD selloff loses steam ahead of mid-tier data
The data from the US showed on Wednesday that the Core Consumer Price Index (CPI) edged lower to 4.3% in July on a yearly basis from 4.5% in June and triggered a modest USD selloff. The US Dollar Index (DXY), which tracks the greenback’s performance against a basket of six major currencies, lost 0.2% on a daily basis.
Nevertheless, the DXY is posting small daily gains above 92.90, suggesting that Wednesday’s rebound was a technical correction rather than a reversal of direction.
Later in the session, the US Department of Labor will release the weekly Initial Jobless Claims report and the US Bureau of Labor Statistics will publish the Producer Price Index (PPI) data.
Earlier in the day, Eurostat report that Industrial Production in the euro area declined by 0.3% on a monthly basis in June. This reading came in slightly worse than the market expectation for a decrease of 0.2% and was largely ignored by market participants.
Technical levels to watch for