On Tuesday, the most traded EUR/USD currency pair had difficulties building upside momentum. Moreover, it did not even break above the important psychological level of 1.1400 during the European trading session. Market participants are looking ahead to important US jobs data. This new information is likely to have a huge impact on the pair’s trajectory in the short term. The persistent rebound of the US Dollar adds to the growing headwinds faced by the Euro against its American counterpart.
In recent trading sessions, the EUR/USD has struggled to regain momentum, closing at approximately 1.1380 before slipping further into the 1.1300 range. Environmental analysts say that this drop is indicative of a bigger trend. Now the Euro succeeds as the US Dollar is on a rampage. The Dollar is recovering as a result of better than expected economic indicators. Rising expectations of changes in monetary policy by the Federal Reserve are contributing to this recovery.
Market sentiment surrounding the EUR/USD currency pair is somber as investors stay tuned to Friday’s US jobs report. This batch of information should shed light on a number of important indicators of the health of our US labor market. That last aspect may affect the Federal Reserve’s policy decisions over the next few weeks. If today’s US jobs data comes in as strong as expected, then the Dollar could rally even more, especially doing more to weigh on the Euro.
Traders and analysts are keeping an eye on the EUR/USD as it continues to trade below the 1.1400 mark. This decline marks a key psychological level that might affect trading behavior. If the currency stays under this mark, it might lead to additional selling pressure and volatility. This will be particularly the case if the US data comes in as bullish as expected.
Moreover, geopolitical developments and a gloomy economic backdrop in the Eurozone keep pushing down the Euro. Recent economic sentiment indicators have disappointed on the downside against market expectations. This has produced doubts about the prospects for the Eurozone economic recovery and panicked investors away from the Euro.
Traders need to keep their guard up as they work their way through the EUR/USD pair. In reality, economic times are changing, and it is critical to understand those changes. After a long weekend in the U.S., the market awaits US jobs data for the week. The news is bound to cause a volley of trading volume and price swings as investors react and sentiment changes.