The EUR/USD pair advanced some this Friday, up to 1.1160 so far in the European morning, limited ahead of the release of the US Nonfarm Payroll monthly report.
The pair sunk to its lowest in two weeks on Thursday of 1.1086, on the back of an ultra dovish ECB that pledged to extend stimulus and recon that inflation and growth may remain subdue by downgrading its forecasts.
But investors' attention is now focused on the US employment data, which can revive speculation the FED is going to raise rates in its upcoming meeting next September 17th. The US government is expected to report in a couple of hours that the economy has added 223,000 new jobs in August and that the unemployment rate ticked down to 5.2%, which will be then at a fresh 7-year low.
View live chart of the EUR/USD
If such is the case, the EUR/USD pair may accelerate its decline, with a break below 1.1050 confirming the bearish continuation towards the 1.0980/1.1000 region. Below 1.0970 stops can be triggered and the sell-off extend down to 1.0920 before the week is over.
If however, the readings miss expectations, the pair may recover ground, with a quick advance up to 1.1200 on fresh daily highs. Above this last figure, the rally can extend up to 1.1240/60, particularly if the risk-off mode seen in Asia extends into the American session.
Latest updates on the EUR/USD Forecast
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.