- Markets calm ahead of key US data
- The focus is on the US employment report to be released at 12:30 GMT.
- Dollar rises modestly, pushing EUR/USD lower.
The EUR/USD is falling on Friday after failing to break 1.0250 and is trading around 1.0230, ahead of the US jobs report against a slightly appreciating dollar in the market.
In the Sweet wait
Wall Street futures are trading flat, as are Treasury yields. This calm before the key event contributes to the stability of the EUR/USD.
In Europe, industrial production data were released that were mostly positive surprises. In Germany a rise of 0.4% was recorded in June, France advanced 1.4% and in Spain 1.1%. The downside came with a 2.1% drop in Italy. The Eurozone data will be reported next Friday, which is expected to show a rise of 0.1%.
The great attention of the market is focused on the US employment report Nonfarm payrolls point to a 250,000 rise according to market consensus. This would imply a slowdown, but still a robust market. The expectation is that the unemployment rate will remain at 3.6%.
The EUR/USD hits jobs data pulling back slightly after failing to break above 1.0250 firmly. The pair’s strong barrier remains around 1.0250/80. A confirmation above would leave the euro stronger. The next major resistance is seen at 1.0370.
In the opposite direction, at 1.0195 is the first significant support and then 1.0140 follows. The critical level appears at 1.0100, as a confirmation below would be a negative signal for the euro, putting the parity at risk.
Technical levels
Source: Fx Street
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