Sept 18 (Reuters) – The dollar held broadly steady on Friday as EUR/USD returned to the middle of its recent range, while sterling stole the spotlight as fears about Brexit, negative rates and coronavirus outbreaks took a toll .
Sterling’s recovery earlier this week merely remedied oversold daily technical studies and Friday’s firmer-than-forecast retail sales were outweighed by the other mounting problems .
Another drop toward GBP/USD’s 200-day moving average support at 1.2730 remains possible if the sell-off in the S&P 500 persists next week. Cable has become highly correlated to the S&P 500, which dropped below its 50-day moving average.
EUR/USD returned to the middle of last week’s range after ricocheting away from the lower 30-day Bolli at Thursday’s 1.1737 five-week low. Euro zone countries are also dealing with rising COVID-19 cases .
The euro has been propped up to a certain extent by the ECB failing to ease