EUR / USD: Euro strengthened mainly due to the weakening dollar

The statistics released today confirmed once again the absence of the momentum of the economic growth in the eurozone. However, despite this, the euro continues to strengthen, indicating that market participants are ready for further purchases of the single European currency.

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The EUR/USD pair has been rising for the third day in a row, heading for the 1.14 mark after breaking through the local resistance level of 1.1370.

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According to the latest report of the European Commission, the composite index of business and consumer confidence in the eurozone economy fell to 106.1 points in February of this year from 106.3 points revised in January. The indicator value has become the lowest since November 2016. Experts anticipated a decline to 106 points from the previously announced value of 106.2 points.

So far, the euro has managed to ignore this statistic, which is primarily due to the almost universal weakening of the greenback.

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It is assumed that the EUR / USD pair can break through the level of 1.14 in the short term if the speech of Fed Chairman Jerome Powell, which will be held today in the US Congress. This will again put pressure on the US currency.

At the same time, the euro looks vulnerable to alarming economic signals that limit the investment attractiveness on a wider horizon. This will again put pressure on the US currency.

The material has been provided by InstaForex Company - www.instaforex.com

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