EUR/USD Current Price: 1.1828
- US employment-related data beat expectations, hinting an encouraging NFP.
- Markit reported that services output in some European countries fell back into recession.
- EUR/USD bounced from daily lows at 1.1788, but the risk remains skewed to the downside.
The American dollar remains the strongest this Thursday, resulting in EUR/USD pair falling to 1.1788 during European trading hours. The ECB is partially responsible for the EUR’s weakness, as policymakers have been expressing their concerns about the latest euro’s appreciation, warning that further gains would weigh on exports and bring down prices. The comments surged after EUR/USD hit 1.20, which has become a line in the sand.
During the European session, Markit released the final versions of the Services PMIs for the Union, with most of them suffering downward revisions. Worth mention, services output in Italy and Spain fell into contraction territory. However, the German index was upwardly revised to 52.5 from 50.8. The final EU figure was also better than initially estimated, revised from 50.1 to 50.5. Meanwhile, EU Retail Sales were down 1.3% MoM in July and up by 0.4% when compared to a year earlier, missing the market’s expectations.
The US has just published some encouraging employment-related numbers, as Initial Jobless Claims for the week ended August 28 decreased to 881K, the lowest reading since the beginning of lockdowns back in March. Nonfarm Productivity in Q2 improved 10.1%, beating expectations, although Unit Labor Cost in the same quarter was down to 9% from12.2% in the previous quarter.
EUR/USD short-term technical outlook
The dollar came under mild pressure with the encouraging news, helping EUR/USD to recover to the current 1.1830 price zone. Still trading in the red daily basis, the 4-hour chart shows that the risk is still skewed to the downside, as the pair trades below its 20 and 100 SMA, with the shortest gaining bearish traction. The Momentum indicator, in the meantime, retains its strong bearish slope well into negative territory, while the RSI indicator has turned flat around 40.
Support levels: 1.1790 1.1755 1.1710
Resistance levels: 1.1840 1.1880 1.1925
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD edges lower after mixed Chinese data, US Dollar remains stronger
The AUD/USD continues to decline for the second consecutive session, trading around 0.6660. This is largely influenced by recent mixed economic data from China released on Friday. The Aussie dollar had already been under pressure after Australia's employment figures were released on Thursday, which presented a mixed picture.
EUR/USD slipped on Thursday after Greenback pares some losses
EUR/USD eased slightly on Thursday, falling back below 1.0880 as the Greenback broadly recovers losses from earlier in the week. The pair remains up for the trading week, but a late break for the US Dollar is on the cards as investors second-guess the Fed's stance on rate cuts.
Gold price loses momentum, with Fed speakers in focus
Gold price trades with a bearish bias on Friday after retreating from the nearly $2,400 barrier. The bullish move of precious metals in the previous sessions was bolstered by the softer-than-expected US inflation data in April, which triggered hope for rate cuts from the US Federal Reserve.
LINK price jumps 10% as Chainlink races toward tokenization of funds
Chainlink price has remained range-bound for a while, stuck between the $16.00 roadblock to the upside and $13.08 to the downside. However, in light of recent revelations, the token may have further upside potential.
April CPI: Worst good news ever
The monthly rise in prices based on the Consumer Price Index (CPI) came in slightly lower than projected, sending a wave of euphoria across the financial landscape. The consensus is cooling inflation puts Federal Reserve interest rate cuts back on the table.