The euro fell victim to sustained USD strength Monday, with the US dollar index reaching highs of 98.88, poised to approach the 99.00 handle.
The weekly timeframe has price action nearing support, shaped in the form of a 2016 yearly opening level at 1.0873.
EUR/USD witnessed a resurgence of selling last week, south of long-standing channel resistance, drawn from the high 1.1569. Downside targets rest at the 2016 yearly opening level from 1.0873 followed by channel support, taken from the low 1.1109.
Key risk events today: China Trade Balance; China USD-Denominated Trade Balance; Canada Employment Change and Unemployment Rate; US Average Hourly Earnings m/m; US Non-Farm Employment Change; US Unemployment Rate. (Previous analysis as well as outside sources – italics). EUR/USD: The euro ceded further ground to the US dollar Thursday, shedding more than 115 points, or … Continue reading Friday 7th February: Dollar Reigns Ahead of NFP.
US employment figures provide an irreplaceable insight into the condition of the world’s largest economy. It’s considered a leading indicator of consumer spending, which drives the economy.
The US dollar index (DXY) continued to flex its financial muscle Wednesday, strengthened on the back of upbeat data across the board. According to Automatic Data Processing (ADP), private-sector employment increased by 291,000 from December to January, on a seasonally adjusted basis.
