Further your trading knowledge and gain informed market analyses from our expert strategist on USD with our free Q3 trading guide ...The Euro was higher again against the United States Dollar on Friday as shaky eurozone economic data didn’t deflect markets from optimism that US interest rates could start to fall this year, possibly as soon as September.
The financial markets are looking for a June rise of 190,000 nonfarm payrolls, well below April’s 272,000, and a steady overall jobless rate of 4%. Expect on-target or weaker data to keep early rate cuts very much on the table, while any upside surprises could see the Dollar take off once more, although bulls will have a lot to do if they’re going to counteract the considerable momentum weighing on the greenback against many major rivals.
Bulls now eye resistance at the 1.08438 mark, which is also the first Fibonacci retracement of the rise to June 4’s significant high from the lows of mid-April, How far any consolidation occurs below current levels could be key for EUR/USD sentiment. A test of nearby support at 1.07964 probably wouldn’t be too alarming for the bulls, but a probe lower toward 1.07 and below might set alarm bells ringing and put the market on alert for a deeper fall.Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.