- EUR/USD is attempting to extend its recovery above 1.0200 as investors expect a downbeat US NFP.
- A preliminary estimate for the US NFP is 270k, lower than the prior print of 390k.
- Stable Average Hourly Earnings in the US may hurt the paychecks of the households.
The EUR/USD pair has attracted some bids after sensing exhaustion signals near 1.01610. A dead cat bounce is supporting the shared currency bulls and now the same are attempting to extend their recovery above 1.0200. The asset has rebounded modestly as the US dollar index (DXY) is facing the corrective phase after printing a fresh 19-year high at 107.24 on Wednesday. The DXY has surrendered the critical support of 107.00.
The DXY witnessed decent attention on Wednesday after the release of the hawkish Federal Open Market Committee (FOMC) minutes. Only one FOMC member was not in support of announcing a 75 bps rate hike by the Federal Reserve (Fed). The guidance is also highly restrictive if price pressures persist for longer.
Going forward, the spotlight will remain on the US employment data. As per the market consensus, the US economy has flooded the job market with additions of 270k fresh jobs in June. The figure is lower than the prior release of 390k. The Unemployment Rate is seen unchanged at 3.6%. The catalyst which could hurt the market sentiment is the Average Hourly Earnings. The economic data may remain stable at 5.2%, however, the inflation rate has climbed to 8.6%. This will hurt the paychecks of the households further and eventually will dampen the overall demand.
On the eurozone front, recession fears are hurting the shared currency bulls on a broader note. The gas supply tensions between Europe and the UK economy are haunting the shared currency bulls. The UK administration announced that the economy will stop supplying gas to mainland Europe if it hits shortages in the coming months.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats to 1.0700 area following post-PCE jump
After spiking to a daily high of 1.0720 with the immediate reaction to US PCE inflation data, EUR/USD lost its traction and declined to the 1.0700 area. Investors remain cautious ahead of this weekend's French election and make it difficult for the Euro to gather strength.
GBP/USD stays below 1.2650 after US inflation data
GBP/USD struggles to preserve its bullish momentum and trades below 1.2650 in the American session on Friday. Earlier in the day, the data from the US showed that the annual core PCE inflation declined to 2.6% in May, limiting the USD's upside and helping the pair hold its ground.
Gold keeps its daily gains near $2,330 following US PCE data
Gold prices maintain their constructive bias around $2,330 after US inflation readings gauged by the PCE matched consensus in May and US yields advance slightly across the curve.
BTC struggles around the $62,000 level
Bitcoin price faces pullback resistance at the lower band of the descending wedge around $62,000. Ethereum price finds support at $3,288, the 61.8% Fibonacci retracement level. Ripple price faces resistance at $0.500, its daily resistance level.
French Elections Preview: Euro to suffer after the calm, as specter of extremists, uncertainty rise Premium
The first round of French parliamentary elections is set to trigger high uncertainty. Soothing messages from the far right and far left leave the Euro vulnerable to falls. Calm may return only after the second round of voting on July 7.