EURUSD tests 0.9800 zone with focus on non-farm payrolls

• The dollar falls on Friday ahead of the jobs report.
• The market consensus is for a payroll increase of 200,000.
• EURUSD try to trim weekly losses.

EURUSD is rising on Friday on the back of dollar weakness, ahead of major US economic data. The pair is testing daily highs just below 0.9800, extending the recovery after falling to intraday lows on Thursday at 0.9728.

The dollar it is weakened by a rise in equity markets and commodities. Treasury bond yields are stable, validating part of the rise of these days.

The big challenge for the dollar will come at 12:30 GMT with the US employment report for October, which is expected to show a rise in non-farm payrolls of 200,000 and the unemployment rate to go from 3.6% to 3.5%. These numbers can have a big impact.

Prior to this, the final reading of the S&P Global Integrated PMI for October was released on Friday, which was revised upwards from 47.1 to 47.3. Another report indicated that wholesale inflation, the Producer Price Index (PPI) rose 1.6% in September, taking the annual rate from 43.4% to 41.9%. The data had no impact on the market, which is awaiting the US jobs report.

a dim light

EURUSD is rising on Friday after four straight days of declines, which took the price below the 20-day moving average, which is at 0.9830. Short-term momentum remains bearish, although a return above 0.9860 would ease pressures.

To the downside, a return below 0.9750 would expose Thursday’s low at 0.9729, and the 0.9700 area. If the declines extend, the October low at 0.9627 would enter the scene.

Technical levels