- The euro gains momentum in the market before expectations of the ECB.
- The dollar retreats from new cycle highs.
- The US employment report and several speeches by Fed officials are coming.
- EUR/USD manages to hold on to the 2022 low.
EUR/USD appreciates on Friday ahead of key US data and after managing to hold above 2022 lows. The pair bottomed out at 1.0482, the low in a week and then bounced up more than 100 pips. He just hit a high at 1.0592.
EUR/USD’s bullish momentum can remain firm if it continues above 1.0570. To the upside, the next resistance is at 1.0600 and then the weekly high at the 1.0640 area. In the opposite direction, 1.0550 is again relevant short-term support, followed by 1.0510 and then 1.0470, the 2022 low.
The pair’s rebound is fueled by dollar weakness on Friday and also a general rise in the euro. The common currency just posted multi-day highs against the Swiss franc and the pound. It is among the best performing coins so far on Friday.
The president of the Bundesbank and member of the Governing Council of the European Central Bank (ECB), Joachim Nagel stated that the window to take action is slowly closing; refers to the time to adjust monetary policy and deal with inflation. These comments add to the expectation that the ECB will raise interest rates sooner.
On the side of dollar, a stabilization is taking place after the rise on Thursday, where it strongly reversed what had been the fall on Wednesday after the meeting of the Federal Reserve. The dollar index (DXY) falls 0.30% after marking new highs since 2002.
Regarding data, it was known that industrial production in Germany in March fell 3.9%, more than expected, being the worst month since April 2020.
At 12:30 GMT the US official employment report for April The market consensus points to an increase in non-farm payrolls of 391,000 and the unemployment rate to go from 3.6% to 3.5%. The report could have a high impact on the market.
In addition to the labor market figures, another focus of attention will be the speeches by Fed officials, the first after the recent meeting. Speaking will be John Williams of the New York Fed, Neel Kashkari of Minneapolis, Raphael Bostic of Atlanta, James Bullard of St. Louis, Mary Daly of San Francisco and Gov. Christopher Waller.
Technical levels
Source: Fx Street
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