The financial world a bit quieter this Friday, as Chinese markets stabilized following the decision of the PBoC to intervene to support the Yuan, while taking down the circuit breaker law. That means, trading won't be suspended or interrupted, at a certain level of decline.
The EUR/USD pair retreated from a high set at 1.0939 at the beginning of the past Asian session, to the current 1.0880 region on improved market mood. Now, investors are waiting for the US employment data report, the Nonfarm Payroll. The US economy is expected to have created 200K new jobs during December, while the unemployment rate is expected to hold steady at 5%.
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Considering the FED has finally delivered a rate hike in the last month of 2015, and the repeated warnings over a slow pace in following hikes, market's expectations are more limited for this employment report, and if it comes in line with expectations, could be a bid disappointment to traders. A strong deviation, however, should put the dollar back in motion, with the strong report probably pushing the pair below 1.0845, the immediate support as per being the 38.2% retracement of the December rally, and pointing for a decline towards the 1.0780 price zone.
A disappointing report on the other hand, should help the common currency in recovering ground, with an advance beyond 1.0925 opening doors for an approach to the 1.0960 region first, en route to 1.1000 then.
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