- EUR/USD has been dragged to near 1.0230 as DXY is picking bids ahead of the US NFP.
- US job market will increase at a diminishing rate as employment levels have reached their full capacity.
- The downbeat Retail Sales and German Factory Orders indicate a slowdown in Eurozone ahead.
The EUR/USD pair has given a downside break of the inventory distribution formed in a narrow range of 1.0243-1.0254 in early Tokyo and has corrected to near 1.0230. The major is displaying exhaustion in the upside momentum and is likely to extend its correction as the US dollar index (DXY) has attempted a rebound after printing a low of 105.70 on Thursday.
As per the market consensus, the additional jobs created in the month of July may trim to 250k against the prior release of 372k. No doubt, rising interest rates have compelled the US corporate players to invest with such precautions. Costly dollars have forced them to move further with the safest investments only. Therefore, a slump in job creation was highly expected.
In spite of that, the DXY is performing well ahead of the labor market data. As investors are aware of the fact that the US economy is maintaining full employment levels consecutively for the past six months. Therefore, room for more employment generation is less and an increment in jobs with a decreasing rate should be welcomed by the market participants.
On the eurozone front, a slump in the overall demand is becoming a major concern for the shared currency bulls. Earlier, the Retail Sales data landed at -3.7%, lower than the expectations of -1.7% and the prior release of 0.4%. In times, when price pressures are sky-rocketing, the Retail Sales data should have reported an uptick, however, a slump in the same indicates that the overall demand is extremely poor.
Now, the downbeat German Factory Orders data has bolstered the slowdown claims. The economic data has squeezed by 0.4% vs. the expectation of a squeeze by 0.8% and the prior squeeze of 0.2% on a monthly basis.
|Today last price||1.0234|
|Today Daily Change||-0.0012|
|Today Daily Change %||-0.12|
|Today daily open||1.0246|
|Previous Daily High||1.0254|
|Previous Daily Low||1.0154|
|Previous Weekly High||1.0258|
|Previous Weekly Low||1.0097|
|Previous Monthly High||1.0486|
|Previous Monthly Low||0.9952|
|Daily Fibonacci 38.2%||1.0216|
|Daily Fibonacci 61.8%||1.0192|
|Daily Pivot Point S1||1.0182|
|Daily Pivot Point S2||1.0119|
|Daily Pivot Point S3||1.0083|
|Daily Pivot Point R1||1.0281|
|Daily Pivot Point R2||1.0317|
|Daily Pivot Point R3||1.0381|
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.