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EUR/USD halts three-day losing streak, amid mixed U.S. data

Published 08/05/2015, 05:43 PM
Updated 08/05/2015, 05:48 PM
The euro settled at 1.0904 against the dollar on Wednesday to end a minor three-day losing streak
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Investing.com -- EUR/USD rose slightly on Wednesday halting a three-day losing streak, amid mixed economic data in the U.S. ahead of Friday's critical jobs report for the month of July.

The currency pair traded between a range of 1.0849 and 1.0933 during Wednesday's session before settling at 1.0904, up 0.21% for the session. Previously, the euro closed down against its American counterpart on six of the last session after spiking above 1.11 on July 27. As a result, EUR/USD is down more than 1.85% over the last 30 days of trading.

The pair likely gained support at 1.0808, the low from July 20 and was met with resistance at 1.11, the high from July 28.

The dollar surged forward on Wednesday morning, after the ISM's Non-Manufacturing Index soared to 60.3 in July, its highest reading in a decade. The reading gained more than seven points from its level in June, as both new orders and backlog orders rose sharply on the month. Analysts expected a consensus range for the July reading to come in between a level of 55.0 and 57.5.

The U.S. Dollar Index, which measures the strength of the greenback against a basket of six other major currencies, jumped to an intraday high of 98.33 shortly after the release – its highest level since April 23. The index reversed territory in afternoon trading as investors locked into gains, ending the session at 97.97, down 0.05%.

The dollar pared earlier losses that resulted from a downgraded assessment of the current conditions in the U.S. labor market. In its monthly national employment report for July, fellows from the ADP Research Institute estimate that private payrolls in the U.S. rose by 185,000 in July, below forecasts of a 210,000 gain and down from an increase of 237,000 a month earlier. It comes two days before the U.S. Department of Labor releases the official government data from its national employment situation report for the month of July.

On Wednesday, Federal Reserve governor Jerome Powell said he will be taking a data-dependent approach to the timing of a potential interest rate hike, placing particular emphasis on the strength of the labor market. In an exclusive interview CNBC on Wednesday, Powell said the Fed has yet to determine whether it will start to raise rates in September.

In Europe, bond prices on sovereign debt fell sharply as yields on Italian, Spanish and German 10-year bonds each rose by more than 10 basis points on the session. Earlier on Wednesday, the European Union's statistics agency said retail sales in the euro zone for June fell 0.6% from May, but were up by 1.2% on a year-over-year basis.

Yields on the U.S. 10-Year rose five basis points to 2.27%.

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