|

EUR/USD softens as US Dollar firms on mixed labor data and weak Eurozone Retail Sales

  • EUR/USD slips as the US Dollar steadies on mixed US labor data and weak Eurozone Retail Sales.
  • US private payrolls increased by 54K in August, below the 65K forecast and sharply lower than July’s revised 106K.
  • Focus now on US services sector data, with S&P Global PMIs expected to hold steady at 55.4 and ISM Services PMI projected at 51.

The Euro (EUR) is under pressure against the US Dollar (USD) on Thursday, with EUR/USD retracing part of Wednesday’s advance and trading near 1.1645 at the start of the American session. The mild pullback comes as the Greenback regained traction following a mixed set of US labor market data, while softer Eurozone Retail Sales added to pressure on the Euro.

The ADP Employment report showed that US private payrolls increased by 54,000 in August, undershooting expectations of 65,000 and down sharply from July’s revised 106,000, pointing to slower hiring momentum. Weekly Initial Jobless Claims also ticked up to 237,000 from 229,000, suggesting a modest rise in layoffs. At the same time, Q2 Nonfarm Productivity was revised higher to 3.3% from 2.4%, while Unit Labor Costs eased to 1.0% compared with 1.6% expected, indicating that wage pressures are cooling.

The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, is ticking higher, trading near 98.30, retracing part of Wednesday’s losses. The index remains confined within the narrow range that has defined trading since early August, suggesting investors are awaiting Friday’s Nonfarm Payrolls (NFP) report for a clearer directional cue.

In the Eurozone, July Retail Sales fell 0.5% MoM, a deeper drop than the 0.2% forecast and reversing June’s 0.6% gain. On an annual basis, sales rose 2.2%, missing the 2.4% forecast and down from the 3.5% pace recorded previously. The figures point to weaker household demand, adding to concerns about the bloc’s growth outlook even as inflation remains slightly above the European Central Bank's (ECB) 2% target.

Looking ahead, attention turns to the US services sector, with both S&P Global and ISM Purchasing Managers Index (PMI) readings for August due later on Thursday. The S&P Global Composite and Services PMI are expected to hold steady at 55.4, signaling continued expansion. From the ISM survey, the headline Services PMI is seen improving modestly to 51.0 from 50.1, while sub-indices on Employment, New Orders, and Prices Paid will provide additional insight into service-sector momentum and inflation pressure.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Australian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.12%-0.00%0.21%0.16%0.28%0.21%0.20%
EUR-0.12%-0.12%0.05%0.03%0.22%0.09%0.03%
GBP0.00%0.12%0.24%0.15%0.33%0.21%0.14%
JPY-0.21%-0.05%-0.24%-0.03%0.04%0.07%0.03%
CAD-0.16%-0.03%-0.15%0.03%0.10%0.07%-0.00%
AUD-0.28%-0.22%-0.33%-0.04%-0.10%-0.12%-0.17%
NZD-0.21%-0.09%-0.21%-0.07%-0.07%0.12%-0.02%
CHF-0.20%-0.03%-0.14%-0.03%0.00%0.17%0.02%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Vishal Chaturvedi

I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.

More from Vishal Chaturvedi
Share:

Editor's Picks

AUD/USD flatlines near 0.6965 as less hawkish RBA counters USD weakness

AUD/USD holds steady above a two-week low, trading near 0.6965 in the Asian session on Wednesday as early midterm election results heighten political uncertainty and weigh heavily on the US Dollar. Moreover, reviving safe-haven demand triggers a fresh leg down in US bond yields, offsetting Fed hike bets and exerting additional pressure on the buck. However, a less hawkish RBA caps the Aussie.

USD/JPY declines below 158.00 as USD weakens on midterm election results

USD/JPY comes under heavy selling pressure on Wednesday, dropping below 158.00 during the Asian session as the US Dollar slumps to a one-month low amid heightened political uncertainty after early US midterm vote counts. Moreover, the prospect of gridlock in Washington drives safe-haven flows, triggering a fresh leg down in US bond yields and further weighing on the buck.

Gold ticks lower while early trend points to Democrats victory in House

Gold trades with caution at around $3,930 in the Asian trading session on Wednesday. The precious metal struggles to gain direction as investors shift their focus to United States Midterm elections where early trend shows that Democrats would have a clear majority in House of Representatives.

Bitcoin tests critical support, Ethereum struggles below resistance, XRP extends losses
Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) remain under pressure on Wednesday as bearish momentum continues to weigh on prices. BTC approaches key support around $76,466, and a decisive close below could open the door to deeper losses. Meanwhile, ETH struggles below key resistance while XRP faces rejection at the upper trendline of a falling channel pattern, all hinting at deeper losses.
US Dollar Index dives to late September lows near 101.25 on US election results

The US Dollar Index, which tracks the Greenback against a basket of currencies, comes under intense selling pressure during the Asian session on Wednesday, dropping to its lowest level since late September as early US midterm election results heightened political uncertainty.

The 2% inflation target came from a throwaway remark. It now moves trillions
The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.