EURUSD pair is gaining momentum in order to retake the round-level resistance of 1.0900.
In the early European session, the EURUSD pair is gaining momentum in order to retake the round-level resistance of 1.0900. The key currency EURUSD has acquired strength as the US Dollar Index (DXY) is suffering huge pressure despite fantastic possibilities of 25 basis points (bps) interest rate rise in July by the Federal Reserve (Fed).
In the Asian session, the S&P500 futures have extended their losses. US equities were also subjected to intense selling pressure. Thursday, as considerably better-than-expected job gains in June fueled expectations of further Fed rate hikes.
Far better-than-expected job growth in the United States has fueled expectations of future Fed rate rises.
Despite worries of future policy tightening, the US Dollar Index (DXY) has extended its drop to approximately 103.05. Despite increased interest rates and stringent lending restrictions imposed by commercial banks, the US labor market is not in the mood to let loose.
In the future, the financial community will pay close attention to the US Nonfarm Payrolls (NFP) statistics. According to consensus, the US labor market was expanded by 225K, compared to the previous release of 339K. The unemployment rate is likely to fall to 3.6% from 3.7% previously reported.
As the old continent’s inflationary pressures remain persistent, hopes for additional interest rate hikes from ECB Lagarde are growing
In the Eurozone, German monthly industrial production fell by 0.2%, while the street was expecting a 0.1% increase. German Factory Orders were positive on Thursday, indicating that the industrial sector may be on the mend.
Meanwhile, as inflationary pressures persist across the old continent, prospects for higher interest rates from European Central Bank (ECB) President Christine Lagarde are growing.
