EUR/USD: Bears may rely on US jobs report after ECB’s dovish surprise


  • 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.

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD retreats toward 1.0850 despite weak US employment data

EUR/USD retreats toward 1.0850 despite weak US employment data

EUR/USD loses its traction and declines toward 1.0850 after testing 1.0900 earlier in the session. Because Nonfarm Payrolls data for October missed the market expectation by a wide margin due to hurricanes and strikes, the US Dollar manages to hold its ground.

EUR/USD News
GBP/USD climbs above 1.2950, looks to end week little changed

GBP/USD climbs above 1.2950, looks to end week little changed

GBP/USD benefits from the improving risk mood and trades in positive territory above 1.2950 in the American session on Friday as markets ignore the weak labor market data from the US. The pair remains on track to end the week flat.

GBP/USD News
Gold clings to small gains near $2,750 after US data

Gold clings to small gains near $2,750 after US data

Gold clings to marginal recovery gains and trades slightly above $2,750. The 10-year US Treasury bond yield struggles to push higher after the dismal October jobs report and weaker-than-expected PMI data from the US, helping XAU/USD keep it footing.

Gold News
Bitcoin Weekly Forecast: Run toward fresh all-time high hinges on US presidential election results

Bitcoin Weekly Forecast: Run toward fresh all-time high hinges on US presidential election results

Bitcoin could experience a price pullback in the next few days ahead of the US presidential election, analysts say, an event that will be key to determining whether and how the crypto class will be regulated in the years to come.

Read more
Bank of Japan holds rates steady amid signs of modest GDP growth

Bank of Japan holds rates steady amid signs of modest GDP growth

Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures