EUR/USD drops to near 1.0830 on market caution, US NFP data eyed

EUR/USD loses ground possibly due to the escalated geopolitical tensions in the Middle East.
US Initial Jobless Claims increased to 221K against the expected 214K.
Eurozone Retail Sales (YoY) is expected to decrease by 1.3% in February, compared to 1.0% prior.

Akhtar Faruqui FXStreet

EUR/USD persists in its downward movement that commenced on Thursday, edging closer to 1.0830 during Friday's Asian trading hours. The US Dollar (USD) remains bolstered by market caution, likely influenced by escalating geopolitical tensions in the Middle East.

This increase in tension comes in the wake of Iran's pledge to retaliate against Israel's assault on Iran's embassy in Syria, resulting in the fatalities of Iranian military personnel. Furthermore, reports highlighting heightened threats against Israeli embassies in the United States (US) by Iran have intensified market apprehensions.

However, the US Dollar (USD) faced downward pressure due to weaker employment data from the United States (US) on Thursday, supporting the EUR/USD pair. Neutral remarks from several Federal Reserve officials likely mitigated the downward trend of the US Dollar.

US Initial Jobless Claims for the week ended March 29 increased by 9,000 to 221,000, compared to the previous week's reading of 212,000, albeit below the market consensus of 214,000. Additionally, US Challenger Job Cuts for March stood at 90.309K, exceeding the previous reading of 84.638K.

On the other side, the Eurostat Producer Price Index (PPI) recorded a decline of 1.0% in February, surpassing both the expected and previous decreases of 0.7% and 0.9%, respectively. On a year-over-year basis, the index fell by 8.3%, slightly lower than the anticipated 8.6% decrease but higher than the 8.0% decline seen previously. Additionally, the HCOB Composite PMI demonstrated growth, rising to 50.3 from the previous reading of 49.9.

Recent data indicates that the annual inflation rate in the Eurozone declined more than anticipated in March. This has led to speculation that the European Central Bank (ECB) may consider cutting interest rates in June.

Traders await Germany’s Factory Orders and Eurozone Retail Sales on Friday. From the United States, Average Hourly Earnings and Nonfarm Payrolls are scheduled to be eyed.

EUR/USD

Overview
Today last price	1.0826
Today Daily Change	-0.0011
Today Daily Change %	-0.10
Today daily open	1.0837

Trends
Daily SMA20	1.0855
Daily SMA50	1.083
Daily SMA100	1.0875
Daily SMA200	1.0833

Levels
Previous Daily High	1.0876
Previous Daily Low	1.0832
Previous Weekly High	1.0864
Previous Weekly Low	1.0768
Previous Monthly High	1.0981
Previous Monthly Low	1.0768
Daily Fibonacci 38.2%	1.0859
Daily Fibonacci 61.8%	1.0849
Daily Pivot Point S1	1.082
Daily Pivot Point S2	1.0804
Daily Pivot Point S3	1.0776
Daily Pivot Point R1	1.0865
Daily Pivot Point R2	1.0893
Daily Pivot Point R3	1.091

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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