EUR/USD rises further to fresh 4-week highs at 1.1870
- US dollar holds onto losses across the board ahead of NFP.
- EUR/USD rises for the fifth consecutive day, no signs of exhaustion yet.
The EUR/USD rose further during the American session and climbed to 1.1870, the highest level in almost a month. It then pulled back, and is it hovering around 1.1860, on its way to the fifth consecutive daily gain, on the back of a weaker US dollar.
Data fails to lift the dollar
The US Dollar Index is down by 0.20% at 92.30, about to post the lowest close in a month. Economic data came in above expectations on Thursday (jobless claims at fresh pandemic lows and factory orders up 0.4% vs 0.3%), but did not help the US dollar that continued to slide after the numbers.
The key economic report is due on Friday with the US official report. Market consensus is for an increase in payrolls of 750K. The report will likely trigger volatility across financial markets.
Analysts at TD Securities expect a 400k rise in payrolls in August. “Significant slowing is being signaled by the Homebase data. We don’t think a 400k reading would be weak enough for Fed officials to back away from their “this year” tapering signal, but it would probably increase the probability of a formal announcement coming at the December rather than the November meeting”.
If payrolls came below consensus, at TDS, they consider it should be meaningful for the USD favoring further softening. “We think downside will likely be contained to the post-June Fed range lows in the broad USD. EUR/USD bias is to the topside; primary attractors located at 1.1909 and 1.1975.”
Technical levels
Read more: https://mcc.exchange/2021/09/02/eur-usd-rises-further-to-fresh-4-week-highs-at-1-1870/
Text source: MCC.EXCHANGE
