EUR/USD remains unable to recover above 1.1460, set for biggest weekly loss since September

• US consumer confidence drops unexpectedly to 10-year low.
• Greenback losses momentum during Friday’s American session as yields correct lower.
• EUR/USD unable to make a sustainable recovery above 1.1450.

The EUR/USD bounced from a fresh cycle low and climbed to 1.1461 but only to pull back quickly under 1.1450. The pair is about to end the week under pressure, unable to make a strong recovery.

The euro is about to post the lowest weekly close since July 2020 versus the US dollar. It remains under pressure and for another time, the rebound was seen as an opportunity for traders to sell EUR/USD.

Economic data in the US showed the US University of Michigan Consumer Sentiment index dropped unexpectedly to the lowest level in 10 years at 66.8 against expectations of an increase to 72.4. “US consumer confidence is being threatened by the rising cost of living. Thankfully the relationship between spending and sentiment has been weak for a number of years and the strong underlying economic position means spending will continue to grow. Meanwhile, people continue to quit their jobs in record numbers as pay rates rise,” explained analysts at ING.

The numbers triggered a decline in US yields and weighed on the greenback. The US Dollar Index turned negative for the day, retreating from one-year highs. The EUR/USD failed to benefit strongly from the weaker greenback, and it remains near weekly lows, showing that the bearish pressure persists.

Technical levels