EUR/USD recovers the 1.1550 despite higher US T-bond yields
|- The market sentiment is in risk-on mode, European equities finished in the green.
- Higher US T-bond yields, put a lid on the single currency rise, against the greenback.
- US Initial Jobless Claims dropped more than expected, adding to the positive US labor market outlook.
After two consecutive days of printing losses, reaching a new yearly low at 1.1528, the EUR/USD is staging a comeback, is trading at 1.1564, modestly up 0.06%, during the New York session, at the time of writing.
The market mood is in risk-on mode, portrayed by European stock indices finishing the day with gains between 1.17% and 2.14%. meanwhile, major US stock indices rise more than 1%, during the day. The US debt-limit increase solution, although short-term relieved market nervousness. Further, Vladimir Putin, the President of Russia, offered an increase of the natural gas supplies for Europe in his attempt to bring energy prices lower.
The US Dollar Index, which tracks the greenback’s performance against a basket of six peers, is down 0.09%, sitting at 94.14. Further, the US 10-year T-bond benchmark note coupon is advancing 4 basis points, sitting at 1.565%, putting the breaks on the buck’s fall against major currencies.
US Jobless Claims better than estimated, ahead of the Nonfarm Payrolls
The US economic docket revealed the US Initial Jobless Claims report for the week ending in October first. The numbers showed an increase to 326K lower than the 348K, foreseen by analysts.
The abovementioned adds to the positive ADP Employment Change report released on Wednesday, ahead of the US Nonfarm Payrolls, report.
On Friday, the US economic docket will feature the Nonfarm Payrolls report. Economists expect the creation of 488K new jobs in the economy. If the figures come in line or better than expected, investors could expect a bond tapering announcement by the FOMC’s November meeting.
KEY ADDITIONAL LEVELS TO WATCH
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.