EUR/USD Faces Selling Pressure Amid US NFP Focus
In today’s European session, EUR/USD is trading cautiously above 1.1000, with attention turning to the upcoming US Nonfarm Payrolls (NFP) report. The pair is hovering near 1.1030 as the US Dollar (USD) sees gains ahead of the NFP release at 12:30 GMT.
Key Points to Consider:
- A sharp increase in US ISM Service Prices Paid raises concerns about persistent price pressures.
- ECB member Schnabel expresses worries over growing economic risks in the Eurozone.
- Investors await the US NFP report to gauge the Fed’s policy direction for the rest of the year.
The US Dollar Index (DXY), which measures the USD against major currencies, remains near 102.00 after a four-day winning streak.
The NFP report is crucial as it will impact the Fed’s decision on interest rates. Analysts predict 140K new jobs, a slight decrease from August’s 142K. The Unemployment Rate is expected to hold at 4.2%, with Average Hourly Earnings growing by 0.3% monthly and 3.8% annually.
Traders have adjusted their expectations for a November rate cut, with the probability dropping to 33% from 53% due to positive economic data.
EUR/USD Market Movers: Euro Weakens Amid Conflicts and ECB Rate Cut Speculations
- EUR/USD falls to around 1.1020 due to market concerns over the Middle East conflict and ECB policy.
- Tensions rise between Iran and Israel, impacting market sentiment.
- Speculation grows for an ECB rate cut on October 17, leading to Eurozone growth worries.
- ECB’s Schnabel highlights growth risks and inflation concerns in the Eurozone.
Euro PRICE Today
The Euro (EUR) has shown varied performance against major currencies today. Notably, it was strongest against the New Zealand Dollar.
| EUR | USD | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| EUR | -0.05% | -0.27% | -0.40% | -0.00% | -0.06% | 0.20% | -0.11% |
Technical Analysis: EUR/USD Struggles Amid Moving Averages
EUR/USD is near 1.1000, below the 50-day Exponential Moving Average (EMA) at 1.1043. The pair’s short-term outlook weakens as it tests support levels.
Traders eye a breakout from the Rising Channel pattern and the 200-day EMA for potential trend changes.
The Relative Strength Index (RSI) at 40.00 indicates weakening momentum, with key resistance levels at 1.1090 and 1.1200.