- EUR/USD falls on Friday on a stronger dollar, bullish for the week.
- US March mixed data: No surprises in jobs, unexpected decline in ISM manufacturing PMI.
- Wall Street indices trim gains; European markets are holding on to modest gains.
The EUR/USD fell further and posted a fresh three-day low during the US session at 1.1026 as the US dollar gained momentum. The bias remains to the downside with the pair poised to trim further weekly gains.
Dollar rises after the NFP, despite the ISM
The US dollar strengthened after the start of the US session as market sentiment deteriorated with US stock indices paring gains. US economic data was mixed, but overall seems to have helped the dollar.
The ISM Manufacturing index unexpectedly fell to 57.1 in March from 58.6; In contrast, the S&P Global PMI was revised higher from 58.5 to 58.8. Earlier, the jobs report showed the economy added 431,000 jobs in March, below an expected 490,000, while the jobless rate fell to 3.6%, its lowest level since 2020.
“A strong report doesn’t turn the dial on USD dynamics. If anything, this number should help validate market prices for a strong Fed tightening and our bias this quarter of fading EUR/USD extremes (inside 1.08/12),” TD Securities analysts wrote.
The EUR closes the week with a negative tone
Despite losing ground on Friday for the second day in a row, EUR/USD remains higher for the week. Since Thursday’s high, it lost over a hundred pips. So far it has bottomed out at 1.1026 and remains under pressure.
The dollar will end the week with losses, but not weak. DXY was up 0.35% on Friday trading at 98.70, validating a recovery after trading below 98.00 for the previous two days.
Technical levels
Source: Fx Street
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