EUR/USD clings to gains above 1.0970 ahead of Payrolls
|- EUR/USD adds to Thursday’s gains beyond 1.0970.
- Weekly upside so far capped around 1.10.
- US Payrolls, Fed’s Powell next of relevance later in the day.
The up beat tone around the shared currency remains well and sound for yet another session, with EUR/USD sticking to the positive ground above the 1.0970 level.
EUR/USD now focused on Payrolls, Powell
The pair is advancing for the fourth consecutive session so far on Friday, always on the back of the deteriorated outlook around the Greenback, particularly exacerbated following poor results from the ISM manufacturing and non-manufacturing.
The recent disappointing readings from the US docket have resurfaced the fears of a deeper slowdown in the US economy (recession?) and forced US yields to quickly correct lower to fresh multi-week lows.
There are no scheduled publications in Euroland today other than the speech by ECB’s De Guindos in Seville. Across the pond, the most salient event will be the release of the monthly labour report, where the economy is expected to have added 145K jobs during September and the unemployment rate to have remained unchanged at 3.7.
What to look for around EUR
The pair keeps the weekly recovery well and sound so far today, retaking levels close to the key 1.10 barrier on the back of increasing selling pressure hitting the Greenback. The up move in the pair, however, is seen as corrective only, as the slowdown in the region stays far from abated and carries the potential to deteriorate further, as per the latest PMIs in core Euroland and despite the lacklustre improvement in a couple of German sentiment gauges. Speaking of Germany, the likeliness that the country could slip back into recession in the third quarter just adds to the already gloomy panorama for the bloc and weighs further on the single currency. The unremitting slowdown in the region does nothing but justify the ‘looser for longer’ monetary stance by the ECB. On another front, potential US tariffs on imports of EU cars remain well on the table, while the Brexit limbo and UK politics adds to the ongoing concerns.
EUR/USD levels to watch
At the moment, the pair is advancing 0.09% at 1.0973 and faces the next resistance at 1.0998 (21-day SMA) followed by 1.1109 (monthly high Sep.13) and finally 1.1163 (high Aug.26). On the downside, a breakdown of 1.0879 (2019 low Oct.1) would target 1.0839 (monthly low May 11 2017) en route to 1.0569 (monthly low Apr.10 2017).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.