EUR/USD managed to find support near the 1.1050 level on Monday as the trading week kicked off with thin volumes due to US markets being closed for the Labor Day holiday. Despite the quiet start, key EU data releases later in the week risk being overshadowed by the highly anticipated US Nonfarm Payrolls (NFP) report.
Throughout the week, traders will be closely watching a series of US labor figures, starting with Wednesday’s JOLTS Job Openings for July, followed by Thursday’s US ADP Employment Change for August, and culminating in Friday’s NFP report for August. The NFP report is particularly significant as it will be the last one before the Federal Reserve’s upcoming meeting on September 18, where a new rate cutting cycle is expected to begin.
EUR/USD Price Forecast
Despite a recent pullback from its 13-month high above 1.1200, EUR/USD remains well supported above the 200-day Exponential Moving Average (EMA) at 1.0845. However, the pair faces a potential bearish pullback towards the 50-day EMA at 1.0956 as short positions gather momentum.
EUR/USD Daily Chart
Euro FAQs
The Euro is the currency for the 20 European Union countries in the Eurozone and is the second most traded currency globally. The European Central Bank (ECB) in Frankfurt manages monetary policy for the Eurozone, with a focus on maintaining price stability. Data releases such as inflation, GDP, and trade balance can impact the Euro’s value and attract global investors.
Overall, the upcoming week in the financial markets will be dominated by US labor figures and the Euro’s performance against the US Dollar. Traders and investors should keep a close eye on these developments as they could have significant implications for their portfolios and financial decisions.