EUR/USD choppy around 1.1230, awaits NFP for fresh direction
- Keeps the bid tone intact amid cautious markets, firmer T-yields and upbeat German data.
- EUR/USD looks to test 1.1150 or 1.1300 on US payrolls data release.
The EUR/USD pair extends its choppy trend in the European session, having stalled its steady recovery near 1.1240 region, as the bulls await the US labor market report for fresh trading impetus.
Nonfarm Payrolls Preview: Jobs, claims and sentiment
The spot extends its typical pre-NFP caution trading so far this Friday, defending the bids around the 1.1230 level, as markets turn cautious and refrain from placing any big bets on the greenback heading into the US NFP release.
Markets are expecting the US economy to have 180k jobs last month when compared to a meager 20k increase seen in February. A bigger-than-expected increase in the US jobs numbers could trigger a fresh USD rally across the board amid beliefs that the US labor market remains stronger and the February dismal report was just a one-off thing. A strong US jobs report could keep the bets for at least one Fed rate hike intact for this year.
Valeria Bednarik, Chief Analyst at FXStreet notes: “The EUR is among the weakest, which means that, even in the case of a poor US employment report, chances of a solid advance are quite a few. A terrible report could prompt some profit taking from the latest USD rally, therefore help the pair advance. The upward move, however, could be short-lived.”
In the meantime, the common currency continues to derive some support from upbeat German industrial production data that rebounded 0.7% m/m in Feb vs. 0.5% expectations and 0.0% last while the upside remains capped amid higher Treasury yields.
EUR/USD Technical Levels