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EUR/USD holds near 1.1555 as US dollar weakens on labor concerns
The US Dollar Index is down about 2-day losses near 99.65, with traders looking ahead to Friday’s July Nonfarm Payrolls after ADP showed 44K private payroll gains.
EUR/USD is trading broadly firm around 1.1555 in Asian hours, supported by a weaker US dollar as deteriorating US employment conditions weigh on sentiment, FXStreet reports.
At the same time, the US Dollar Index, which tracks the greenback versus six major currencies, is holding onto two-day losses near 99.65. FXStreet points to ADP’s July employment update showing 44K private payroll additions, below expectations of 70K and the prior 98K reading.
Looking forward, investors are awaiting Friday’s July Nonfarm Payrolls data for additional cues on the labor market. TD Securities expects a modest improvement after June’s downside surprise, projecting July NFP picking up to about 70K after 57K in June, with the unemployment rate seen steady around 4.2%.
On the euro side, attention is also on Eurozone retail sales for June, scheduled for 09:00 GMT, while EUR/USD seeks to extend a week-long recovery. FXStreet flags that failure to hold the 20-period EMA at 1.1472 could open the door to a move toward the July low near 1.1353, while a sustained break above 1.1538 would reinforce a constructive bias toward 1.1600.
Latest closeEUR/USD 1.156 ▲0.4%|Dollar index 99.69 ▼0.2%