EUR/USD Bounces Back Above 1.0850, Supported by Strong Eurozone
Ahead of the US jobs data, the EUR/USD pair has managed to recover above 1.0850 in early European trading. The Euro found support from strong German Factory Orders data, while renewed weakness in the US Dollar has aided the rebound from weekly lows.
On Wednesday, the EUR/USD closed in negative territory and faced bearish pressure during Asian trading hours on Thursday, reaching its lowest level in three weeks at 1.0833. However, a technical correction in the European session has allowed the pair to hold steady above the 1.0850 level.
The prevailing risk-averse market sentiment has contributed to the demand for the US Dollar as a safe haven. Additionally, the 10-year US Treasury bond yield rose above 3.9%, its highest level in four months, further bolstering the US Dollar.
Early Thursday, Germany released Factory Orders data, showing a significant monthly increase of 6.4%, surpassing market expectations of a 1.5% rise. This positive reading provided support for the Euro and helped it regain some ground.
Later in the day, the US economic calendar includes key data such as ADP Employment Change for June, weekly Initial Jobless Claims, JOLTS Job Openings for May, and the June Services PMI survey by the Institute for Supply Management (ISM).
Navigating through these data releases might be challenging for investors. However, if the figures indicate weakening conditions in the US labor market, the US Dollar could lose strength. A significant increase in Jobless Claims, a sharp decline in JOLTS Job Openings towards 9 million, or an Employment Index reading near 45 in the ISM survey could lead markets to reassess the probability of the Federal Reserve raising interest rates at least two more times this year.
Technical Analysis :
Our preference
Long positions Above 1.08050 with targets at 1.0915 & 1.0950 in extension.
On Wednesday, the EUR/USD closed in negative territory and faced bearish pressure during Asian trading hours on Thursday, reaching its lowest level in three weeks at 1.0833. However, a technical correction in the European session has allowed the pair to hold steady above the 1.0850 level.
The prevailing risk-averse market sentiment has contributed to the demand for the US Dollar as a safe haven. Additionally, the 10-year US Treasury bond yield rose above 3.9%, its highest level in four months, further bolstering the US Dollar.
Early Thursday, Germany released Factory Orders data, showing a significant monthly increase of 6.4%, surpassing market expectations of a 1.5% rise. This positive reading provided support for the Euro and helped it regain some ground.
Later in the day, the US economic calendar includes key data such as ADP Employment Change for June, weekly Initial Jobless Claims, JOLTS Job Openings for May, and the June Services PMI survey by the Institute for Supply Management (ISM).
Navigating through these data releases might be challenging for investors. However, if the figures indicate weakening conditions in the US labor market, the US Dollar could lose strength. A significant increase in Jobless Claims, a sharp decline in JOLTS Job Openings towards 9 million, or an Employment Index reading near 45 in the ISM survey could lead markets to reassess the probability of the Federal Reserve raising interest rates at least two more times this year.
Technical Analysis :
Our preference
Long positions Above 1.08050 with targets at 1.0915 & 1.0950 in extension.
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🇺🇸 US ZERO SPREAD BROKER: forexn1.com/usa/
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