EUR/USD remains depressed around 1.1550 on dollar gains

• EUR/USD dropped to weekly lows near 1.1540 on Thursday.
• The greenback keeps the bid tone intact despite lower yields.
• US Initial Claims surpassed estimates at 269K.

The intense move higher in the greenback keeps EUR/USD under pressure in the mid-1.1500s for the time being.

EUR/USD offered near YTD lows

EUR/USD came under moderate selling pressure on Thursday on the back of the persistent rebound in the greenback, which pushed the US Dollar Index (DXY) to fresh 3-week highs around 94.35 and shifted at the same time the focus to the 2021 highs in the mid-94.00s.

In fact, the pair quickly left behind the post-FOMC gains recorded on Wednesday and resumed the downtrend amidst the persistent negative mood in the risk complex and despite US yields trade on the defensive across the curve.

Same path follows yields of the German 10y Bund, which navigate the area of 4-week lows around -0.22%.

In the calendar, early results showed the final October Services PMIs in both Germany and the euro area receded from the previous readings, while Producer Prices in the bloc rose more than expected in September.

Across the pond, Challenger Job Cuts rose to 22.822 in October, Initial Claims increased by 269K in the week to October 30 and the trade deficit widened to $80.9B in September.

EUR/USD levels to watch

So far, spot is losing 0.51% at 1.1552 and faces the next up barrier at 1.1687 (55-day SMA) followed by 1.1692 (monthly high Oct.28) and finally 1.1755 (weekly high Sep.22). On the other hand, a break below 1.1535 (weekly low Oct.29) would target 1.1524 (2021 low Oct.12) en route to 1.1495 (monthly low Mar.9 2020).