After snapping a two-day gaining run on Tuesday, the EURUSD appears to have stabilized around about 1.0900. The technical picture for the pair indicates that buyers have become cautious. During the American session, investors will pay special attention to US statistics and risk sentiment.The statistics from the United States showing that private sector employment expanded at a considerably slower rate than predicted in March, and the service sector lost impetus, the US Dollar (USD) managed to hold its own versus its rivals.
The unfavorable change in risk sentiment caused by mounting fears about the US economy entering a recession impacted on US markets and helped the USD find demand as a safe haven.
Nonetheless, the yield on US Treasury bonds continues to fall. Investors are still pricing in a more than 50% chance that the US Federal Reserve will maintain its policy rate at its forthcoming meeting. As a result, until hawkish Fed bets reappear, the USD may struggle to prolong its rebound.
The US Department of Labor’s weekly Initial Jobless Claims and Challenger Job Cuts for March will be included on the US economic docket in the second half of the day. However, following this week’s employment-related data announcements, investors are unlikely to react to Thursday’s disclosures.
Risk mood might dictate the EURUSD behavior in the second part of the day.
The risk mood may have an impact on the USD’s performance against its rivals. At the time of publication, US stock index futures were slightly down on the day, and a negative move following Wall Street’s opening bell seems probable. making it harder for the EURUSD to regain its footing, and vice versa.
It’s also worth mentioning that markets may get sluggish, with bond markets in the United States closing early ahead of the Easter vacation.
