During the American session, the US dollar gains even more, unaffected by falling yields.
The EUR/USD is challenging the 1.1845/50 support region.
The EUR/USD fell even lower, hitting 1.1844, its lowest intraday level since early April. The pair soon climbed back above 1.1850, but the euro continues under pressure, battling to stay above the 1.1845/50 support level. During the American session, the US dollar climbed across the board due to end-of-month flows.
Despite lower US yields and a rally in Wall Street stock indices, the US dollar gained ground. The 10-year yield has dropped below 1.45% for the first time since June 21, while the Dow Jones is up 0.45% and the Nasdaq is still negative (-0.08%), although off lows.
On Wednesday, a significant economic statistic came in beyond expectations: the ADP job report indicated a 692.000 increase in private payrolls (vs. 600K). The unemployment claims data is coming on Thursday, and the NFP is due on Friday.
During the US session, comments from Fed’s Kaplan also aided the greenback. He stated that he is prepared to taper sooner “because to concerns regarding efficacy and side effects.”
The pair is heading towards the 1.1845/50 support, and a break below that level would expose the euro to further losses. 1.1830/35 is the next level of support, followed by 1.1795. If the euro can stay above 1.1845, losses should be kept to a minimum. The bearish pressure would be relieved if the price rose over 1.1900/1.1910./n
