EUR/USD: Euro under mild pressure ahead of critical US jobs data
The single European currency is under mild pressures for the fifth consecutive day, approaching 1.15 level, pending the very critical microeconomic data on new jobs in the United States.
After a fairly long period where the partial functioning of the US government affected the collection of critical statistical data, data on employment in the United States that often act as a ''game changer'' are expected later in the afternoon.
The US dollar so far continues to be in the spotlight without however having created the characteristic of a strong rise in the form of a rally, but in any case, prices well above the 1.20 level that several investment houses had predicted as a base scenario are moving away more and more.
The shift in bets on the prospects for a Fed rate cut has proven to be the main driver of the exchange rate's performance in recent weeks, but as bets are still divided there is significant room for speculation and as we approach the Fed meeting date this is likely to come into play more strongly.
Today's agenda, which highlights the announcement of new jobs in the United States, is of great interest and after a significant period of time, it is possible that there will be new catalysts in the game that, if they surprise, are expected to significantly increase the volatility, the range of which has been quite limited in recent weeks.
While awaiting the critical announcements, I continue to remain in a wait-and-see attitude, but I am still considering buying the European currency in a further sharp decline well below the critical level of 1.1450.
Author
Vasilis Tsaprounis
Independent Analyst
Vassilis Tsaprounis possesses over 25 years of professional experience in Capital Markets and especially in the foreign exchange market.
