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06/11/25
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Euro Recovers Amid Risk Appetite; Dollar Maintains Strength
The euro has regained some ground in its recent decline, trading above the 1.1500 level as optimism surrounding risk appetite increases. Markets are consolidating after a period of heightened volatility, supported by buoyant equity performance and positive developments in European corporate earnings. This improvement in market sentiment has helped the euro recover some of its recent losses, although gains remain cautious and somewhat limited.
The US dollar, however, continues to maintain a firm tone, buoyed by robust macroeconomic data released recently. In particular, the latest employment figures surpassed expectations, with the ADP report indicating a significant 42,000 new jobs added in October, reversing a previous decline. Additionally, the services sector demonstrated accelerated activity, with the ISM Services Index exceeding forecasts, suggesting sustained business strength. These indicators have reduced the likelihood of an imminent Federal Reserve rate cut in December, thus supporting the dollar’s resilience.
Investors remain attentive to upcoming economic releases and speeches from policymakers. In Europe, the focus is on retail sales data, expected to show a modest increase, alongside speeches from ECB officials that could influence the euro’s trajectory. Meanwhile, in the United States, several Fed officials are scheduled to speak, providing further clues on the central bank’s policy outlook amid evolving macroeconomic conditions.
Currently, the euro has appreciated against most major currencies, notably strengthening against the New Zealand dollar, amidst a broader easing of risk aversion. Yet, technical charts suggest that while the euro has receded from recent lows, it faces significant resistance around the 1.1545 level, with potential targets higher near 1.1580 and 1.1635 should momentum persist. On the downside, support is seen near 1.1470, with further losses potentially extending toward 1.1440 or lower if bearish pressures intensify. The overall environment remains cautious as markets digest conflicting signals from economic data and policy outlooks worldwide.
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