Investing.com - Financial Markets Worldwide

EUR/USD Seesaws After NFP Data, Ends Week Below 1.0200

ByAlex Boltyan
Published 07/08/2022, 02:12 PM
Euro US Dollar
1.46%
USDIDX
-0.76%

EUR/USD seesawed between small gains and losses Friday as investors assessed an upbeat June U.S. nonfarm payrolls report.

The shared currency is currently trading at the 1.0170 area, having hit a fresh cycle low of 1.0071 as a reaction to the NFP data and rising to a daily high of 1.0191 before losing momentum.

The U.S. Bureau of Labor Statistics data showed the economy created 372,000 new jobs in June, surpassing the market’s estimate of 268,000, which boosted the U.S. dollar as knee-jerk reaction. Further data showed that wage inflation, measured by average hourly earnings, was 5.1% YoY, slightly above investors' estimates while the jobless rate remained unchanged at 3.6%.

Meanwhile, European Central Bank officials remain cautious about rate hikes at the upcoming meetings as they also assess the possibilities of the Eurozone tipping into a recession. The divergence between the ECB and the Fed has put EUR/USD in a downward spiral over the last months, all of which have been exacerbated with the Russian invasion of Ukraine.

EURUSD Daily Chart

Both weekly and daily charts suggest a clear bearish perspective for EUR/USD, which is on its way to parity as the pair remains below its main moving averages while indicators hover in negative territory.

On the daily chart, the RSI stays in oversold levels, while the MACD keeps printing higher red bars as bearish momentum increases.

The 1.0100 area, last seen in December 2002, is the last support that stands between the EUR/USD and parity. On the other hand, a break above the 1.0300 area could pave the way toward the  former cycle low of 1.0349 and then to the 20-day SMA, currently at 1.0430.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.