- Eurozone manufacturing sector continues to lose momentum in January.
- Greenback fails to take advantage of the NFP data.
- EUR/USD remains on track to post gains for the week
The EUR/USD pair continued to push higher in the NA session and touched a fresh daily high of 1.1488. With the trading volume thinning out toward the weekend, the pair started to consolidate its daily gains and was last seen adding 0.25% on a daily basis at 1.1473.
Earlier today, the IHS Markit reported that the Manufacturing PMI for the eurozone came in at 50.5 in January's final reading as expected while the same data slumped to 49.7 in Germany. Despite the disappointing data, however, the broad-based USD weakness didn't allow the pair to turn south.
In the early NA session, the U.S. Bureau of Labor Statistics reported that the nonfarm payrolls in January increased by 304,000 compared to the market expectation of 165,000. The details of the publication showed that the unemployment rate rose to 4% and the wage inflation ticked down to 3.2% on a yearly basis. The US Dollar Index fluctuated wildly as investors assessed the data and settled in the negative territory ahead of the PMI data.
- US: Total nonfarm payroll employment increased by 304K in January vs 165K expected.
- US: Markit Manufacturing PMI comes in at 54.9 in January vs 54.5 expected.
- US: ISM Manufacturing PMI improves to 56.6 in January vs 54.2 expected.
Both the ISM and the Markit Manufacturing today revealed that the business activity in the manufacturing sector in the U.S. expanded at a more robust pace than expected in January. Although the PMI data helped the DXY advance to its session highs one more time, the index struggled to preserve its momentum and was last down 0.04% on the day at 95.50.
While speaking at an event organised by Texas Lyceum in Austin, Dallas Fed President Robert Kaplan argued that the Fed should hold off on further rate increases at least through June and added that pausing was the right thing to do in the current environment to remind investors of the FOMC's latest dovish shift in its monetary policy outlook.
- Fed’s Kaplan: Base case is Fed taking no action through June.
Technical outlook by FXStreet Chief Analyst Valeria Bednarik
The pair is finishing a second consecutive week with gains, around 1.1460, a strong static level and the 61.8% retracement of the January decline. Still unclear whether it would be able to break above it, the weekly chart is offering an encouraging perspective, as the pair is above is closing above its 20 SMA for the first time since last September, while technical indicators offer bullish slopes, the Momentum entering positive territory and the RSI at around 49, skewing the risk to the upside without confirming it.
In the daily chart, technical readings offer a neutral-to-bullish stance, with the pair above the 20 and 100 DMA, and indicators flat around their midlines. In this last time frame, the 200 DMA maintains a strong bearish slope above the current level and around January's high of 1.1569, making of the level a major resistance in the case the pair manages to extend its latest gains beyond 1.1520. The positive momentum could fade if the pair falls below 1.1425, the 50% retracement of the mentioned decline, with next supports coming at 1.1390 and 1.1350.
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

AUD/USD: Door open to extra losses
AUD/USD remained on the back foot on Tuesday, down for the third day in a row and retreating to five-day lows near the key 0.6500 support, always amid the resurgence of the strong demand for the US Dollar, this time underpinned by higher US inflation readings in June.

EUR/USD: Further weakness could extend to 1.1460
On Tuesday, the EUR/USD resumed its negative trend by falling below the crucial support at 1.1600 the figure and reaching fresh three-week lows against the background of a stronger Greenback. So far in July, the pair has only closed higher on two occasions.

Gold's selling pressure picks up pace, focus on $3,320
Gold prices now lose the grip and prompt the precious metal to retreat to daily troughs near the $3,320 mark per troy ounce. The increasing selling pressure around the yellow metal comes in response to a stronger US Dollar, rising US yields across the curcve, and the idea that the Fed might remain cautious for longer.

Ripple Prediction: XRP eyes breakout past $3.00 amid 'Crypto Week'
Ripple (XRP) drops below $3.00 on Tuesday, exchanging hands at $2.87 during the American session. The volatility follows XRP's rally, which tagged a weekly high of $3.03 the previous day, reflecting investors' desire to de-risk in the broader cryptocurrency market.

China’s first-half growth remains on track, though activity data signals caution
China's second-quarter GDP beat forecasts again with a 5.2% year-on-year growth, driven by strong trade and industrial production. Yet sharper-than-expected slowdowns in fixed-asset investment and retail sales and falling property prices are a concern.

Best Brokers for EUR/USD Trading
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.