EUR/USD extends rally to fresh multi-week highs near 1.1140
- Brexit headlines continue to dominate the market on Thursday.
- Disappointing industrial production data from the United States weighed on the USD.
- US Dollar Index slumped to its lowest level since late August.
After gaining 40 pips on Wednesday, the EUR/USD pair preserved its bullish momentum and advanced to its best level in more than seven weeks at 1.1139. As of writing, the pair was trading at 1.1130, up 0.52% on a daily basis.
Developments surrounding Brexit continued to dominate the market on Thursday. The United Kingdom and the European Union finally agreed on a proposed deal. However, the Northern Ireland’s Democratic Unionist Party (DUP) in a statement announced that they will be voting against the deal on Saturday and forced the British Pound to lose interest and caused the demand to shift toward the Euro.
USD sell-off continues on Thursday
On the other hand, the disappointing macroeconomic data releases from the United States weighed heavily on the Greenback on Thursday and provided an additional boost to the pair.
The United States (US) Census Bureau reported that housing starts declined by -9.4% in September. Additionally, the Federal Reserve's monthly publication revealed industrial production contracted by 0.4% in September. "Manufacturing production decreased 0.5% in September, with output reduced by a strike at a major manufacturer of motor vehicles," the Fed noted.
The US Dollar Index slumped to its lowest level since August 26 at 97.50 before staging a technical recovery in the last couple of hours. At the moment, the index is down 0.45% on the day at 97.58.
Technical levels to watch for