The EUR/USD exchange rate continued its strong downward trend this week. It dropped for three consecutive days, reaching a low of 1.1545, down from the year-to-date high of 1.2080.
EUR/USD stays under modest bearish pressure after posting losses on Wednesday and trades in negative territory at around 1.1550 in the European morning on Thursday.
Gold is struggling below the $5,200 level early Thursday, facing headwinds from rising US Treasury bond yields and the US Dollar (USD) as the conflict in the Middle East escalates.
Since being rejected from the yearly highs near the 1.2100 mark in late January, the short-term picture for EUR/USD has been steadily deteriorating.
Sticky domestic inflation, together with a Reserve Bank of Australia (RBA) that still shows little appetite to soften its hawkish stance, continues to offer a supportive backdrop for the Australian Dollar (AUD).
Gold prices are in consolidation mode on Wednesday, with XAU/USD trading around $5,170 with a modest downward bias.