Home Forex News EUR/USD Under Pressure After NFP Beat

EUR/USD Under Pressure After NFP Beat

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  • Non-Farm Payroll Beat
  • U.S Economy Resilience
  • Eurozone Economy recovery Hopes

EUR/USD was under pressure on Friday morning, as the U.S Dollar strengthened on better than expected job reports on Thursday. After initially powering through the crucial 1.13 level, the pair tumbled as the Non-Farm Report affirmed U.S economy resilience.

Euro Under Pressure

The pair has so far struggled to hang on to gains above the 1.13 level, with Euro constantly coming under pressure. The greenback strengthening against other majors amid a spike of risk sentiment due to a second wave of coronavirus infection has continued to limit Euro gains against the Dollar.

Time                            : 29-06-2020

Pivot                           : 1.1257

Technical View           : Long Above 1.1277

Targets                        : 1.1297 – 1.1342 – 1.1376

Comments                  : Neutral

Last Price                    : 1.1228

Technical View           : Short below 1.1237

Target                         : 1.1217 – 1.1196 – 1.1172 – 1.1126

Amidst the recent sell-off, the EUR/USD pair remains bullish across the board as the Euro has remained resilient against the greenback. Bids around the Euro has continued to soar on traders remaining optimistic about Eurozone economy recovery.

Better than expected PMI data in Germany and France have offered the Single currency conversely the bullish sentiment. Similarly, the Euro has strengthened across the board as traders react to the better than expected handling of the COVID-19 pandemic.

While the U.S is battling a vicious second wave of infections, Europe has succeeded in bringing the pandemic to control. Likewise, the European Central Bank has passed a massive €1.35 trillion stimulus plan expected to revitalize the block’s economy.

EUR/USD Outlook

Amid the Euro resilience, a strengthened dollar has continued to curtail any gains on the EUR/USD. The EUR/USD pair lost some of its gains after Jobs’ number in the U.S came in better than expected. The U.S economy reportedly added 4 million jobs in June, indicating the U.S economy is resilient to the shocks triggered by COVID-19. The Jobless rate, on the other hand, eased to11.1% against 13.3% reported in May.

With the U.S market closed for Independence Day celebrations, it promises to be a thin day in the currency market. However, focus will be on the release of German final Markit Composite PMI a swell as the Euro area Markit Composite PMI.

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