- The EUR/USD pair is trading near 1.1200 while heading towards European session on Friday.
- ECB’s dovish stint dragged the pair to a 20-month low on Thursday.
- German factory orders and the US employment data will be crucial to watch.
EUR/USD is trading around 1.1200 before European sessions on Friday. The pair slumped to a 20-month low on Thursday after the European Central Bank (ECB) joined the chorus of dovish central bankers. Traders may now look for monthly details of German factory orders for intermediate direction ahead of focusing on the US employment data for fresh impulse.
The ECB provided a dovish surprise to global markets on Thursday. The regional central bank revised down its gross domestic product (GDP) forecasts for the years 2019 and 2020 while cutting down on inflation predictions for 2019, 2020 and 2021. Additionally, forward guidance to the interest rate was also changed from “through the summer of 2019” to “at least through the end of 2019”. Furthermore, additional TLTRO were introduced with varied frequency.
Having witnessed heavy selling pressure on Thursday, traders adhere to short-covering moves before the European traders take the command.
Seasonally adjusted German Factory Orders for January month could help to extend recovery if matching +0.5% growth forecast against -1.6% earlier contraction.
Though, major attention will be on the February month US employment data up for 13:30 GMT. Market consensus suggests an increase in average hourly earnings to 3.3% and a dip in the unemployment rate to 3.9% compared to earlier prints of 3.2% and 4.0% respectively. The nonfarm payrolls may decline to 180K from 304K.
While likely improvement in German figures could offer intermediate strength to the EUR/USD pair, the overall strength of the US jobs report might continue hurting the prices.
EUR/USD Technical Analysis
The EUR/USD pair can continue signaling 1.1110 and 1.0980 unless it trades beneath 1.1210.
Should buyers manage to come back with an upside clearance of 1.1210, 1.1450 may lure them.
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
Australian Dollar appreciates despite stronger US Dollar, PMI awaited
The Australian Dollar (AUD) continues to strengthen against the US Dollar (USD) following the release of mixed Judo Bank Purchasing Managers' Index (PMI) data from Australia on Friday. The AUD also benefits from a hawkish outlook by the Reserve Bank of Australia (RBA) regarding future interest rate decisions.
Japanese Yen remains on the front foot against USD, bulls seem non-committed
The Japanese Yen (JPY) attracts some buyers for the second straight day on Friday amid reviving bets for more interest rate hikes by the Bank of Japan (BoJ), though it lacks any follow-through.
Gold advances to near two-week high, eyes $2,700 on geopolitical tensions
Gold price (XAU/USD) prolongs its uptrend for the fifth consecutive day on Friday and climbs to a nearly two-week top, around the $2,690-2,691 area during the Asian session. Intensifying Russia-Ukraine tensions force investors to take refuge in traditional safe-haven assets and turn out to be a key factor underpinning the precious metal.
Ethereum Price Forecast: ETH open interest surge to all-time high after recent price rally
Ethereum (ETH) is trading near $3,350, experiencing an 10% increase on Thursday. This price surge is attributed to strong bullish sentiment among derivatives traders, driving its open interest above $20 billion for the first time.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.