Key points:Euro tumbles below $1.03 Markets eye looming jobs data Euro prospects remain downbeat Illustration by TradingViewJob growth expectations
Key points:
- Euro tumbles below $1.03
- Markets eye looming jobs data
- Euro prospects remain downbeat
Job growth expectations aren’t too high and a convincing beat above them might send currency speculators scrambling. Here’s what you should know.
- The
EURUSD pair was floating steadily under the $1.03 handle with stateside traders and investors coming back from their off-day in honor of the passing of the 39th US President Jimmy Carter. Volumes were still low and volatility wasn’t even a thing as forex markets were getting caught up on the latest and preparing for what’s ahead. And some big things are ahead, namely the nonfarm payrolls report for December. - A notorious market-moving event, the nonfarm payrolls are a reliable indicator of the health of the US economy. For December, analysts are eyeballing new jobs created to the tune of 154,000, a lower reading than November’s 227,000 hires. Prepare for a volatility rush later today as forex markets are generally highly sensitive to the jobs reports, especially if the figure is off by a lot from the projected estimates.
- In this context, the euro remains in languishing mode against the stronger dollar. The euro-dollar pair is on its fourth day of consecutive declines, having erased about 1.4%, or roughly 150 pips, from its valuation. Prospects for the euro aren’t too bright either — a continuation of the European Central Bank’s rate-cutting cycle threatens to undermine the bullish case for the old continent’s currency, at least for the foreseeable future.
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