EUR/USD struggles to stage a convincing rebound, retreats to 1.1860
|- EUR/USD stays in a consolidation phase on Thursday.
- US Dollar Index stays below 92.50 after US data releases.
- Focus shifts to US June labour market report.
The EUR/USD pair dropped to its lowest level since early April at 1.1838 in the early European session but managed to stage a rebound. However, the pair lost its momentum around 1.1880 and started to edge lower during the American trading hours. As of writing, EUR/USD was posting small daily gains at 1.1862.
Earlier in the day, the data from the euro area showed that the Markit Manufacturing PMI edged higher to 63.4 in June and surpassed the market expectation of 63.1. Additionally, Eurostat announced that the Unemployment Rate declined to 7.9% in May, compared to analysts' estimate of 8%. Nevertheless, the positive impact of these upbeat data on the shared currency remained short-lived.
DXY holds steady ahead of NFP
On the other hand, the US Dollar Index (DXY) continues to fluctuate in a relatively tight range below 92.50, not allowing EUR/USD to make a decisive move in either direction.
The US Department of Labor's weekly publication revealed on Thursday that the Initial Jobless Claims declined to 364,000, the lowest print in more than 15 months, in the week ending June 26. Moreover, the ISM Manufacturing PMI edged slightly lower to 60.6 in June from 61.2.
On Friday, the Producer Price Index (PPI) data will be featured in the European economic docket. More importantly, the US Bureau of Labor Statistics will release the Nonfarm Payrolls report for June.
Previewing the US jobs report, "the dollar has room to fall in response to June's Nonfarm Payrolls report due to elevated expectations, undoing of existing positions and more," said FXStreet analyst Yohay Elam.
NFP Preview: Four reasons why June's jobs report could be a dollar downer.
Technical levels to watch for
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