Euro set to weaken further

Andrew Masters FIBO Group

The Euro is under further pressure today against its US counterpart after suffering heavy losses on Friday on the back of strong data from the US and the potential for further falls in the coming days and weeks remains strong.

The latest nonfarm payrolls figure from America hit the market on Friday at 261,000 while the unemployment rate hit 4.1 percent which continues the positive momentum of the employment market.

“The non-farm payrolls report for October provided further evidence that the US labour market remains healthy,” says Lee Hardman, a currency analyst at MUFG.

“Healthy employment growth is resulting in the labour market continuing to tighten as evident by the drop in the unemployment rate to a new cyclical low of just 4.1%.” he added.

The figure being passed around the market at the moment for the Euro/USD is around $1.13 as we head towards the end of the year, which was backed up by last week’s inflation figures from the Eurozone which once again fell short of expectations.

This will leave the ECB no choice but to leave rates on hold for the foreseeable future and unable to cut back on their bond buying program.

On the other hand, the market has priced in a more than 90 percent rate hike from the US Federal Reserve next month which is only going to add the attractiveness of the US dollar and leaving traders wondering where is the value in holding the Euro.

Author

Andrew Masters

FIBO Group

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.