- MarketPulse - https://www.marketpulse.com -

EUR/USD flirts with 1.13 but unable to consolidate

Euro Shrugs as US Posts Mixed Job Data

US job numbers have been in uncharted territory in the wake of Covid-19. Nonfarm payrolls have shown huge moves – just two months ago, NFP plunged by a staggering 20 million jobs. However, the economy has shown signs of recovery, with gains in the past two releases. The economy produced a gain of 4.8 million jobs, easily beating the estimate of 3.03 million. There was more good news as the unemployment rate fell to 11.1%, down from 13.3% beforehand. Unemployment claims dipped to 1.42 million, higher than the estimate of 1.35 million. At the same time wage growth remains an area of concern, as wages continue to fall. The indicator declined by 1.2% in June, missing the forecast of -0.8 percent. This follows a decline of 1.0% in the May release. The mixed job figures did not make a mark on the forex market, and EUR/USD barely stirred in the North American session.

Eurozone PMIs Unlikely to Shake Up EUR/USD

On Friday, we’ll get a look at Services PMIs across the eurozone. The services sector has shown steady improvement, after being hammered in Q1 by the coronavirus, as the lockdown let to a shutdown of much of the sector. The Spanish, Italian and eurozone PMIs are projected in the mid-40s, which still indicates contraction but is not too far from the 50-level, which separates contraction from expansion. The French PMI is expected to nudge above the 50-level. On the manufacturing front, the final estimate for German PMI is expected to confirm the initial read of 45.8 points. Unless these estimates are well off the mark, the PMI releases are unlikely to stir up EUR/USD on Friday.

EUR/USD Fundamentals

Thursday (July 2)

Friday (July 4)

*All release times are DST

*Key events are in bold

EUR/USD Technical

As can be seen in the above chart, EUR/USD pushed above the 1.1300 line in the Asian session, but was unable to consolidate these gains. The pair lost ground in the European and North American sessions.

Further levels in both directions:

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

Latest posts by Kenny Fisher (see all [4])