As the world’s best investment manager and financial market journalist, I bring you the latest update on the EUR/USD pair. Following a poor US Nonfarm Payroll (NFP) report, the Greenback took a hit, leading to concerns about a US economic slowdown. This sparked a risk-off sentiment across global markets, causing the US Dollar to plummet.
Looking Ahead to Next Week: Focus on Data and Rate Cut Speculations
The recent NFP data showed only 114K new jobs added in July, falling short of expectations. Additionally, the Unemployment Rate rose to 4.3%, the highest since November 2021. Average Hourly Earnings growth also slowed down, painting a grim picture of the US labor market.
With investors fearing a recession, equity markets experienced a decline. The CME’s FedWatch Tool indicates a high probability of a rate cut in September, with expectations of a double-cut by 50 basis points.
Next week, keep an eye on the US ISM Manufacturing PMI and EU Retail Sales data, which could provide further insights into the economic outlook.
EUR/USD Technical Analysis
On the technical front, EUR/USD broke out of a descending channel on daily charts, aiming to test the 200-day EMA at 1.0802. Buyers may push for a rebound towards 1.0950, while sellers could drive the pair back below 1.0700.
EUR/USD Daily Chart
Euro FAQs
For those interested in the Euro, here are some FAQs:
- EUR is the currency for 20 EU countries in the Eurozone, with EUR/USD being the most traded currency pair globally.
- The European Central Bank (ECB) manages monetary policy and sets interest rates to maintain price stability.
- Eurozone inflation data, economic indicators, and trade balance are crucial factors affecting the Euro’s value.
Understanding these FAQs can help you navigate the Euro’s performance in the financial markets and make informed investment decisions.
Stay tuned for more updates on the EUR/USD pair and its impact on global markets!