EUR/USD slipped back below 1.0800 as bearish pullback gains strength after mixed US data reignited fears of a possible recession in the US. With the US NFP jobs report looming for Friday, market attention is fixed squarely on hiring numbers.
Forex Today: Markets’ Attention Shifts to US NFP
European economic data remains thin for the rest of the trading week, while next week sees little of note on the release side for the EU. All eyes are on Friday’s US Nonfarm Payrolls (NFP) jobs report for July, with investors hoping for a moderate drop to 175K new US jobs. The market is walking a tightrope as rate cut expectations are pinned high, with any drastic economic downturn potentially rendering Fed rate cuts irrelevant.
US economic indicators paint a mixed picture, with Initial Jobless Claims rising and ISM Manufacturing PMI falling to an eight-month low. However, ISM Manufacturing Prices Paid accelerated, indicating higher input prices for manufacturers despite declining activity.
EUR/USD Technical Outlook
The Fiber’s downside performance sent the pair tumbling below key technical levels, with a bearish turnaround in EUR/USD sinking the Euro into a decline against the Greenback. Price action remains within a choppy descending channel, with near-term highs falling short of key levels.
Euro FAQs
The Euro is the currency for 20 European Union countries in the Eurozone, with EUR/USD being the most heavily traded currency pair in the world. The European Central Bank (ECB) in Frankfurt manages monetary policy to maintain price stability, with inflation data and economic indicators playing a crucial role in Eurozone’s economic health.
Overall, the market sentiment is cautiously optimistic but wary of economic downturns that could impact rate cut expectations. Understanding the dynamics of EUR/USD and Eurozone economics is essential for investors navigating the current financial landscape.