EUR/USD closes in on multi-month highs near 1.1450
- EUR/USD looks to post highest weekly close since January 2019.
- US Dollar Index stays near 96.00 despite disappointing consumer confidence data.
- Investors remain focused on EU talks on budget and recovery fund.
After breaking above 1.1400 during the European trading hours, the EUR/USD pair preserved its bullish momentum and rose to a daily high of 1.1440. With this climb, the pair came within a touching distance of the four-month high that it set at 1.1452 last Wednesday. Moreover, EUR/USD remains on track to post its best weekly close since the last week of January 2019.
USD weakness lifts EUR/USD
The broad-based selling pressure surrounding the greenback helps the pair push higher on Friday. Although the University of Michigan's Consumer Sentiment Index slumped to 73.2 (preliminary) in July and missed the market expectation of 79, the USD failed to attract investors as a safe-haven. At the moment, the US Dollar Index (DXY) is down 0.3% on the day at 96.00.
Meanwhile, Wall Street's main indexes are trading little changed on Friday, not providing any directional clues to the DXY.
Earlier in the day, European Council president Charles Michel said that it was possible to reach an agreement on the EU budget and the recovery fund. Commenting on the same matter, French President Emmanual Macron he was "confident but cautious" that they could have a deal.
EU leaders are set to continue their talks on Saturday and investors are not expecting to see a result today.
Finally, the data published by the Eurostat revealed that the core Consumer Price Index (CPI) remained unchanged at 0.8% on a yearly basis as expected.
Technical levels to watch for