The EUR/USD currency pair dipped below 1.0850 in the European morning on Friday. A cautious risk tone sustains the US Dollar despite low US Treasury bond yields, placing downward pressure on the pair. Typical US and EU statistics is what we anticipate.

Friday morning saw no movement in the EUR/USD pair after Thursday’s stalemate around 1.0850. Technical analysis indicates a continuation of the bullish bias. Risk sentiment may affect EUR/USD before the weekend, which will likely be quiet regarding top-tier macroeconomic data.

Due to recent poor US macroeconomic data releases, the US dollar has struggled against its rivals. Initial unemployment claims increased to 231,000 from 218,000 in the week ending November 11, while industrial production dropped 0.6% in October.

Early Friday, the US dollar is weak due to a decline in demand caused by falling rates on US Treasury bonds. The 10-year US yield dropped by around 1% to 4.4%.

The US economic calendar for today includes reports on October housing starts and building permits. However, market participants may pay greater attention to how risk is perceived.

At the time of this writing, futures contracts for the S&P 500 and the Euro Stoxx 50 had increased by 0.2%. The pair may add to its weekly gains if risk appetite prevails during the American session.

Trade Idea:

Consider short positions on EUR/USD as the cautious risk tone and disappointing US data weighed on the pair.