- Euro area employment continued to expand despite the persistent and pronounced weakness in euro area.
- EUR weighed down by soft national inflation data but attracting bids on a tighter labour market.
EUR/USD was somewhat robust overnight considering the US Dollar's rise to fresh cycle highs in the DXY. The single currency traded between 1.0950 to 1.0885, steadying around 1.0900, weighed down by soft national inflation data but attracting bids on a tighter labour market.
Euro area employment continued to expand despite the persistent and pronounced weakness in euro area manufacturing, analysts at ANZ Bank explained:
"The unemployment rate fell to 7.4% in August from 7.5% in July and 8.0% a year earlier. That was the lowest rate of unemployment since May 2008 and close to pre-GFC lows. In spite of the slowdown in Germany, unemployment fell 10k. The improving labour market is providing some offset to weakness in manufacturing, but inflation still remains subdued. In September, Germany HICP inflation was 0.9% y/y, down from 1.0% y/y in July."
Key US data kicking in
Meanwhile, looking ahead, we have key US data coming up in the September ISM data this week from the Institute for Supply Management (ISM) is due in the NY session, "providing an update on sentiment in the sector and some guidance for the payrolls report due Frida," analysts at Westpac explained:
"The August headline index of 49.1 was the weakest reading since Jan 2016. Consensus for Sep is 50.1. Aug construction spending is also due, with potential implications for Q3 GDP estimates.
EUR/USD levels
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.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.