- The EUR/USD advances slightly in the middle of a repositioning before the crucial macroeconomic data of the Eurozone/USA.
- The preliminary PMI of the Eurozone could influence the euro before the expected US NFP report.
- Any significant divergence of the expected readings could infuse volatility around the pair.
The EUR/USD torque attracts some buyers during the Asian session on Friday and seeks to build on the intradic movement above the round of 1,1300. Cash prices, for now, seem to have broken a three -day loss streak to a minimum of more than two weeks, around the area of 1,1265 touched on Thursday, in the midst of a repositioning trade before the crucial economic releases of the Eurozone and the US.
The officials of the European Central Bank (ECB) recently warned about the downward risks for eurozone inflation. Therefore, investors will maintain an attentive eye in the preliminary consumer price index (CPI). Any surprise to low will reaffirm market bets for an interest rate cut of 25 basic points (PBS) at the July ECB meeting. This, in turn, will weigh on the shared currency and will pave the path for the resumption of the recent EUR/USD pair from the 1,1575 area, or the highest level since November 2021 reached last month.
From the US, it is expected that the report of non -agricultural payroll (NFP), popularly known, show that the world’s largest economy added 130,000 new jobs in April, a strong fall from the 228,000 reported in the previous month. However, the unemployment rate is expected to remain stable at 4.2%. However, crucial data could provide a new perspective on the Federal Reserve Policy (FED), which, in turn, will influence the Dog from the US Dollar (USD) and will provide a significant impulse to the EUR/USD.
Meanwhile, the prospects for a more aggressive relief of politics by the Fed do not help USD to capitalize a three -day movement towards a maximum of several weeks. In fact, the operators increased their bets that the US Central Bank will carry out four feat cuts of a quarter to date after the data published this week showed that the US economy contracted unexpectedly for the first time since 2022. This, in turn, stops the USD bullies when opening new positions, which, in turn, is considered a wind EUR/USD.
Economic indicator
Harmonized index of underlying consumer prices (annual)
The harmonized consumer prices index (IAPC) measures the changes in the prices of a representative basket of goods and services in the European Monetary Union. The IAPC, published by Eurostat Monthly, it is harmonized because the same methodology is used in all member states and its contribution is weighted. The interannual reading compares the prices of the month of reference with those of a year earlier. The underlying IAPC excludes volatile components such as food, energy, alcohol and tobacco. The underlying IAPC is a key indicator to measure inflation and changes in consumption trends. Generally, a high reading is considered bullish for the euro (EUR), while a low reading is considered bassist.
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Next publication:
old May 02, 2025 09:00 (PREL)
Frequency:
Monthly
Dear:
2.5%
Previous:
2.4%
Fountain:
Eurostat
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
