EUR/USD wavers within previous ranges ahead of US claims, housing data

EUR/USD bounces up from 1.1833 lows but remains below the 1.1900 level.
Strong US Nonfarm Payrolls provided a moderate boost to the US Dollar.
US Jobless Claims and Home Sales figures might provide some guidance later on Thursday.

Guillermo Alcala FXStreet

The Euro (EUR) shows marginal gains against the US Dollar (USD) on Thursday, trading at 1.1880 at the time of writing, up from Wednesday's lows at 1.1833. The pair has trimmed previous losses amid a moderate risk appetite as the positive impact of the strong US Nonfarm Payrolls (NFP) report on the USD faded.

January's delayed US NFP report showed a 130K increase in net employment, almost twice the 70K forecasted by market analysts, and the Unemployment Rate declined to 4.3% from 4.4% in the previous month.

An excessive concentration of employment creation, with the healthcare sector accounting for nearly two-thirds of January's payrolls and a sharp downward revision to 2025 figures, somewhat tempered investors' optimism. Wednesday's data, however, has eased concerns about the health of the US labour market, triggered by the downbeat ADP Employment Change and JOLTS Job Openings released last week.

The Fed is unlikely to cut rates before June

Futures markets have scaled back bets of Fed rate cuts in the coming months following the NFP report. The odds for monetary easing in March have dropped to 5% from 20% pre-NFP, and the chances of a rate cut in April have dropped to 20% from above 40%, according to the CME's Fed Watch Tool. Investors still see a 60% chance of an easing move in June, the first monetary policy meeting with Kevin Warsh in the central bank's chair.

In the US session, Initial Jobless Claims and Home Sales figures might provide some distraction, although traders might remain cautious ahead of Friday's Consumer Price Index (CPI), for a more complete assessment of the Fed's monetary policy path.

Later on Thursday, European Central Bank Board member Philip Lane, and Bundesbank President Joachim Nagel will take the stage to reiterate the idea of a steady monetary policy for the ner future, which is likely to keep the Euro buoyed.

Economic Indicator

Initial Jobless Claims

The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. A larger-than-expected number indicates weakness in the US labor market, reflects negatively on the US economy, and is negative for the US Dollar (USD). On the other hand, a decreasing number should be taken as bullish for the USD.

Why it matters to traders?

Every Thursday, the US Department of Labor publishes the number of previous week’s initial claims for unemployment benefits in the US. Since this reading could be highly volatile, investors may pay closer attention to the four-week average. A downtrend is seen as a sign of an improving labour market and could have a positive impact on the USD’s performance against its rivals and vice versa.

Economic Indicator

Existing Home Sales Change (MoM)

The Existing Home Sales, released by the National Association of Realtors, provide an estimated value of housing market conditions. As the housing market is considered as a sensitive factor to the US economy, it generates some volatility for the USD. Generally speaking, a high reading is positive for the Dollar, while a low reading is negative.

GBP/USD off highs, back to 1.3620

GBP/USD remains slightly on the defensive at the end of the week, receding to the low 1.3600s after hitting fresh tops past 1.3670 earlier in the day. Cable’s correction comes after two daily gains in a row and amid a tepid advance in the Greenback, while poor UK data also accompany the downside.

EUR/USD treads water below 1.1700

EUR/USD now trades with modest losses around 1.1670 following another unsuccessful atempt to advance past 1.1700 the figure in a convincing fashion. The pair’s decline follows a maginal rebound in the US Dollar as market participants continue to assess recent US data as well as developments from the US bond market.

Gold trims gains, recedes to the sub-$4,600 area

Gold rapidly leaves behind Thursday’s inconclusive price action and advances markedly on Friday, briefly surpassing the $4,600 mark per troy ounce to hit three-month peaks. Meanwhile, the precious metal’s solid performance comes despite marginal gains in the buck coupled with another day of rising US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP bulls accelerate rally amid rising ETF inflows

The cryptocurrency market remains bullish on Friday, led by Bitcoin’s surge above $77,000. Altcoins, including Ethereum and Ripple, mirror BTC’s positive outlook, trading near $2,400 and $1.35, respectively.

Week ahead – Fed’s Jackson Hole and Nvidia earnings to dictate markets

Kevin Warsh to make his Jackson Hole debut amid confusing messaging. But a major hawkish surprise unlikely after bond market intervention. Nvidia earnings to also determine market direction as stock rally cools.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.