The EUR/USD pair climbed back above 1.1100 on Thursday, marking a second consecutive day of gains as investors shifted away from the US Dollar ahead of the highly awaited US Nonfarm Payrolls (NFP) report on Friday. The market sentiment remains cautious as traders await further clues on a potential rate cut by the Federal Reserve in September.
Despite the positive movement in the EUR/USD pair, gains were limited after disappointing EU Retail Sales data for July. The year-on-year Retail Sales figure came in at -0.1%, missing expectations and signaling a slowdown in European economic growth.
On the other hand, the US ADP jobs report for August showed a weaker-than-expected increase of 99K jobs, raising concerns about a possible recession in the US economy. This data sets the stage for Friday’s NFP report, which is expected to provide more clarity on the Fed’s future monetary policy decisions.
Market expectations are split between a 25 bps and a 50 bps rate cut by the Fed in September, with investors closely monitoring the NFP report for insights into the central bank’s next moves.
EUR/USD Price Forecast
Despite the recent uptrend in EUR/USD, the pair faces resistance near the 1.1200 level and is currently trading above the 200-day Exponential Moving Average (EMA) at 1.0845. However, a potential pullback could see the pair testing support near the 50-day EMA at 1.0956.
EUR/USD Daily Chart
Euro FAQs
The Euro is the second most traded currency in the world, with EUR/USD being the most popular currency pair. The European Central Bank (ECB) plays a crucial role in managing the Eurozone’s monetary policy, with interest rates and inflation data being key factors influencing the Euro’s value.
Overall, the EUR/USD pair’s movement is influenced by a combination of economic data releases, central bank decisions, and global market sentiment. Traders and investors should closely monitor upcoming events and reports to stay informed about potential market trends and opportunities.