EUR/USD weakens to 1.0780 ahead of German Trade Balance, Eurozone PMI data

EUR/USD trades on a weaker note near 1.0772 amid the stronger USD.
Fed’s Powell said a rate cut in March is too soon, as he doesn’t believe that inflation is heading back to 2% sustainably.
US January Nonfarm Payrolls were at 353K, beating market expectatins of 180K; the Unemployment was flat; wages spiked.

Lallalit Srijandorn FXStreet

The EUR/USD pair faces some selling pressure above the mid-1.0700s during the early Asian trading hours on Monday. The US Dollar Index (DXY) edges higher as the Federal Reserve (Fed) Chair Jerome Powell pushed back on the timing of rate cuts. The major pair currently trades around 1.0772, down 0.19% on the day.

Late Sunday, Fed Chairman Jerome Powell said a rate cut in March is too soon as he doesn’t believe the FOMC will have the confidence by then that inflation is heading back to 2% sustainably. Powell added that policymakers see it appropriate to cut rates this year, but it is prudent to be open to the possibility of rates falling from spring onwards. The US central bank will discuss at the March meeting about the timing of easing the pace of quantitative tightening (QT).

According to the US Bureau of Labor Statistics on Friday, the Nonfarm Payrolls (NFP) rose by 353K in January, above expectations for a 185K increase in the previous reading. Meanwhile, the Unemployment Rate was unchanged at 3.7%. Finally, wage growth is firming, with Average Hourly Earnings climbing 4.5% YoY in January from the previous reading of 4.4% in December.

On the other hand, European Central Bank (ECB) Governing Council member Boris Vujcic said on Sunday that the central bank needs to ensure there aren’t any second-round effects on inflation from wages before cutting interest rates.
Investors will keep an eye on the German Trade Balance and the January HCOB Composite PMI from Germany, the Eurozone and Spain. On the US docket, the ISM Services PMI will be due.

EUR/USD

Overview
Today last price	1.0776
Today Daily Change	-0.0017
Today Daily Change %	-0.16
Today daily open	1.0793

Trends
Daily SMA20	1.0885
Daily SMA50	1.0911
Daily SMA100	1.0783
Daily SMA200	1.0839

Levels
Previous Daily High	1.0898
Previous Daily Low	1.078
Previous Weekly High	1.0898
Previous Weekly Low	1.078
Previous Monthly High	1.1046
Previous Monthly Low	1.0795
Daily Fibonacci 38.2%	1.0825
Daily Fibonacci 61.8%	1.0853
Daily Pivot Point S1	1.075
Daily Pivot Point S2	1.0707
Daily Pivot Point S3	1.0633
Daily Pivot Point R1	1.0867
Daily Pivot Point R2	1.0941
Daily Pivot Point R3	1.0984

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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