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Euro holds gains near 1.1550 as ECB hike bets rise

German factory orders beat expectations, supporting speculation the ECB will raise rates in September while investors wait for US Nonfarm Payrolls.

Reported · Written up by our desk · Major Pairs

The euro steadied against the US dollar in the European session, with EUR/USD holding near the 1.1550 area after rebounding about 1.6% from last week’s lows, according to FXStreet.

FXStreet attributed euro support to softer oil prices and stronger eurozone data, including German Factory Orders rising 3.1% in June versus a 0.3% forecast, after a downward revision to May’s 0.3% reading. Follow-on indicators, including an upward revision to the HCOB Services PMI released Wednesday, are adding to expectations that the European Central Bank will hike rates in September.

On the US side, FXStreet noted data that tempered the dollar, including ADP Employment showing a 44K increase, well below June’s 98K gain and the market’s 70K expectation. It also pointed to an ISM Services PMI component reading for prices and employment, with the ISM Services PMI up to 54.1 in July from 54 but below the 54.5 expected.

Ahead of the US Nonfarm Payrolls release, FXStreet said the dollar remains weighed down by investor caution. It also referenced Scotiabank technical analysis, highlighting near-term resistance around 1.1550, no major move expected until the 200-day moving average near 1.1630, and a near-term EUR/USD range forecast between 1.1500 and 1.1600.

Latest closeEUR/USD 1.156 ▲0.4%

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