EUR/USD erases Wednesday's FOMC-inspired losses, rises above 1.2220
- EUR/USD continues to push higher during the American session.
- US Dollar Index retreats to 89.80 area following Wednesday's jump.
- Wall Street's main indexes post strong gains on Thursday.
The EUR/USD pair broke above 1.2200 in the early American session and advanced to a daily high of 1.2227. As of writing, the pair was up 0.4% on the day at 1.1220.
DXY extends daily slide amid falling T-bond yields
The renewed selling pressure surrounding the greenback seems to be fueling EUR/USD's daily rally. After gaining 0.45% on the back of the hawkish FOMC statement on Wednesday, the US Dollar Index is currently losing 0.4% at 89.82. In the absence of significant fundamental drivers, the risk-positive market environment is making it difficult for the USD to continue to find demand.
At the moment, the S&P 500 and the Nasdaq Composite indexes are up 0.85% and 1.65%, respectively, confirming the upbeat market mood.
The US Department of Labor reported on Thursday that the weekly Initial Jobless Claims declined to 444,000 from 478,000, compared to analysts' estimate of 450,000.
Meanwhile, the sharp decline witnessed in the US Treasury bond yields is putting additional weight on the USD's shoulders. The benchmark 10-year US Treasury bond yield was last seen losing 3% at 1.625%.
Earlier in the day, the data from the euro area revealed that the Consumer Price Index (CPI) remained steady at 1.6% on a yearly basis in April as anticipated and failed to trigger a meaningful market reaction.
Technical levels to watch for