EUR/USD edges higher toward 1.2100 on renewed USD weakness
- EUR/USD rose to its highest level since April 2018 above 1.2100.
- US Dollar Index edges lower toward 91.00 during the American session.
- Fed will release its Beige Book at 1900 GMT.
The EUR/USD pair capitalized on the broad-based selling pressure surrounding the greenback and touched its highest level since April 2018 at 1.2109. Although the pair edged lower in the early American session, the technical correction remained short-lived. As of writing, EUR/USD was up 0.22% on the day at 1.2097.
DXY struggles to stage a meaningful rebound
The USD's market valuation remained the primary driver of EUR/USD's movements on Wednesday. The US Dollar Index (DXY) slumped to its lowest level in more than 30 months at 91.10 during the Asian trading hours and rebounded modestly in the second half of the day supported by risk-off flows. However, with Wall Street's main indexes paring early losses and turning flat on the day, the DXY lost its recovery momentum and was last seen losing 0.2% at 91.13.
Earlier in the day, the data published by the Eurostat showed that the Unemployment Rate in the euro area declined to 8.4% in October to come in better than the market expectation of 8.5%.
On the other hand, the ADP Research Institute's monthly report revealed that the private sector employment in the US increased by 307,000, which missed analysts' estimate of 410,000 by a wide margin.
On Thursday, Retail Sales data from the euro area will be looked upon for fresh impetus. Later in the day, the US Department of Labor's weekly Initial Jobless Claims, the IHS Markit and the ISM's Services PMI reports will be featured in the US economic docket.
Technical levels to watch for