EUR/USD tumbles below 1.1600 to lowest in two weeks

• Euro under pressure around the London fix, drops across the board.
• US dollar strengthens even as US yields pull back.
• EUR/USD drops a hundred pips from weekly highs.

The EUR/USD pair is accelerating the decline on Friday amid a stronger US Dollar across the board. Around the last London fix of October, the pair dropped to 1.1563, reaching the lowest level in two weeks.

The pair remains near the lows, with a strong bearish tone. The euro is also falling versus the Swiss franc and the pound. EUR/CHF is having the worst day in months, trading under 1.0580, at the lowest since May 2020.

US yields look steady while US stocks are posting mixed results, not behind the rally of the greenback. End-of-month flow and some positioning ahead of next week’s FOMC meeting could be playing a key role. “With the Fed set to embark on taper and flexibility likely to be a key feature of policy going forward, risk/reward is shaping up more positively for the USD into and out of the Fed,” explained analysts at TD securities.

The reversal in EUR/USD pushed the price from the highest in four weeks to weekly lows. The euro is headed toward the lowest weekly close since May 2020. Currently stands at 1.1570, where the 200-week simple moving average stands.

Technical levels