- The Euro rebounds and approaches intraday highs at 1.0800.
- The weakness of the ADP data in the US causes the dollar to fall in general.
- The negative figures from the Eurozone limit the recovery of the Euro.
The Euro trims some losses ahead of Wednesday’s US session opening, helped by slight weakness in the US Dollar after the US ADP report showed an unexpected decline in US employment.
US ADP confirms US labor market cooling
Job creation increased by 103,000 new payrolls in the US in. November, well below the 130,000 reading expected by the market. Additionally, the October figure has been revised downwards to 106,000, compared to the previously estimated 113,000.
These figures confirm that the impact of restrictive interest rates is beginning to affect the labor market. However, the impact on the pair has been moderate, as the euro has been affected by negative German factory orders data and the contraction in services activity published on Tuesday.
If the Nordic payrolls report confirms this view on Friday, it will fuel speculation that the Fed could start lowering rates in the first quarter of 2024 and increase negative pressure on the US dollar.
However, the overall picture has not changed much. The pair maintains a clear bearish bias, while it is below 1.0800 and 1.0850. On the downside, support levels are 1.0750 and 1.0660.
Technical levels to monitor
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.
