Vasilis Tsaprounis
Independent Analyst
The single European currency is trying to approach 1,11 level having developed very mild upward momentum in the wake of yesterday's announcements where some preliminary data on the US jobs sector disappointed.
Despite the mild reaction of the European currency, the general picture of the market does not show any significant changes and investors remain extremely cautious awaiting tomorrow's announcement on the new jobs outside the agricultural sector and the level of unemployment in the United States which is expected to determine the decisions of Fed on September 18.
I remind that the contraction of the labor sector in the United States acted as one of the catalysts that weighed on the US currency and drove the euro to significantly higher prices 2 weeks ago.
Let's not forget that in several statements Fed's President has sent the message that further cooling in the labor sector is not desirable and he could use interest rate cuts as a weapon to stop the increase in the unemployment rate and by extension to prevent a possible recession in US economy.
The possibility of an increase of 50 basis points is not the main scenario and if it happens it will be a shock event that will affect the US dollar very negatively, but is something that I would not adopt especially if Friday's does not disappoint.
On today's agenda, the employment ADP figures - America’s largest payroll providers - stand out, which often act as a harbinger of Friday's jobs data and are followed by the market with enough interest.
While today's rich agenda is completed by Eurozone Retail Sales and the survey on the course of the service sector in US.
The exchange rate staying close to the 1,1050 - 1,1100 level with some small extensions on either side of the levels is a likely scenario for today.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
AUD/USD: Door open to extra losses
AUD/USD remained on the back foot on Tuesday, down for the third day in a row and retreating to five-day lows near the key 0.6500 support, always amid the resurgence of the strong demand for the US Dollar, this time underpinned by higher US inflation readings in June.
EUR/USD: Further weakness could extend to 1.1460
On Tuesday, the EUR/USD resumed its negative trend by falling below the crucial support at 1.1600 the figure and reaching fresh three-week lows against the background of a stronger Greenback. So far in July, the pair has only closed higher on two occasions.
Gold's selling pressure picks up pace, focus on $3,320
Gold prices now lose the grip and prompt the precious metal to retreat to daily troughs near the $3,320 mark per troy ounce. The increasing selling pressure around the yellow metal comes in response to a stronger US Dollar, rising US yields across the curcve, and the idea that the Fed might remain cautious for longer.
Ripple Prediction: XRP eyes breakout past $3.00 amid 'Crypto Week'
Ripple (XRP) drops below $3.00 on Tuesday, exchanging hands at $2.87 during the American session. The volatility follows XRP's rally, which tagged a weekly high of $3.03 the previous day, reflecting investors' desire to de-risk in the broader cryptocurrency market.
China’s first-half growth remains on track, though activity data signals caution
China's second-quarter GDP beat forecasts again with a 5.2% year-on-year growth, driven by strong trade and industrial production. Yet sharper-than-expected slowdowns in fixed-asset investment and retail sales and falling property prices are a concern.
Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.