- EUR/USD recovered modestly after falling to the 1.1700 area.
- The US dollar index remains in positive territory above 93.20.
- 10-year US Treasury yields cling to modest daily gains.
EUR/USD fell to a daily low of 1.1701 early in the US session, but managed to recover much of those losses. Taking into account the rate on the day and the week as a whole, the pair ended the day down only 0.1% on the day at 1.1725.
U.S. stocks remain resilient on Friday
Hours earlier, data from Germany showed that the IFO – Business Climate Index eased to 98.8 in September, missing the market’s expectation of 100.4, and this reading weighed on the shared currency. Additionally, the IFO Current Assessment Index decreased to 100.4 from 101.4 in August.
However, the risk-averse market environment allowed the dollar to continue to outperform its rivals in the first half of the day. Despite this, the US dollar index (DXY) struggled to maintain its upside momentum and helped EUR/USD move higher. Currently, the DXY, which reached a session high of 93.42, is up 0.2% at 93.27.
Hawkish comments from Fed officials have supported the dollar. Esther George, president of the Kansas City Fed, said Friday that the criteria for tapering bonds have been met. In a similar vein, Cleveland Fed President Loretta Mester said she supports the idea of reducing asset purchases in November.