- EUR/USD keeps the offered note near the 1.18 mark.
- US Non-farm Payrolls rose by 1,763K jobs in June.
- The unemployment rate ticked lower to 10.2% from 11.1%.
The selling interest around the single currency remains well and sound, with EUR/USD hovering around the 1.1800 region in the wake of the US labour market report for the month of July.
EUR/USD stays capped by 1.1920 so far
EUR/USD keeps the daily negative stance on Friday after the US economy created 1.763 million jobs during last month, surpassing expectations for a gain of 1.6 million jobs and up from June’s 4.791 million (revised from 4.8 million).
Further data showed the jobless rate eased to 10.2% and the critical Average Hourly Earnings – a proxy for inflation via wages – rose 0.2% MoM and expanded 4.8% over the last twelve months, both prints coming in above expectations.
What to look for around EUR
EUR/USD pushed higher and recorded new highs near 1.1920 on Thursday, triggering the subsequent leg lower to around a cent lower. The July rally, while largely triggered by broad-based dollar-selling and improved sentiment in the risk-associated universe, found extra sustain in auspicious results from domestic fundamentals, which have been in turn supporting further the view of a strong economic recovery in the wake of the coronavirus fallout. Also lending wings to the momentum around the euro appears the recently clinched deal on the European Recovery Fund – which helped to put political fears within the bloc to rest (for now) – and the solid position of the current account in the region.
EUR/USD levels to watch
At the moment, the pair is losing 0.47% at 1.1820 and faces immediate contention at 1.1695 (weekly low Aug.3) followed by 1.1495 (monthly high Mar.9) and finally 1.1448 (50% Fibo of the 2017-2018 rally). On the other hand, a breakout of 1.1916 (2020 high Aug.6) would target 1.1996 (high May 14 2018) en route to 1.2032 (23.6% Fibo of the 2017-2018 rally).
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EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
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Eurozone PMI sounds the alarm about growth once more
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