EURUSD is trading in a narrow range before the US payrolls data

Last Updated on April 7, 2021

EURUSD Forecast – 3rd April 2021

EURUSD traded in a limited range in the European session to settle above its lowest level in about five months.

This comes in light of financial market closure due to today’s holiday, in addition to risk aversion and the increasing investor appetite to buy the US dollar as the best alternative investment.

EURUSD traded at $1.1777 from today’s opening session at $ 1.1776, after rising over the past two days due to recovery operations from its lowest level in nearly five months at $ 1.1704, which was recorded earlier in this week’s trading.

EURUSD

With the end of this year’s first quarter, the single currency incurred losses of about 3.9%, registering the first quarterly decline in a year, and it is the largest since the third quarter in 2019. These heavy losses come amid increasing speculation of a slowdown in the European economy in light of the continuation of closure measures to limit the spread of Coronavirus, especially after the emergence of the third wave. At the same time many European countries suffer from weak vaccinations against the virus.

EURUSD is recovering

The US dollar witnessed a decline against a basket of major currencies, recording the third consecutive daily decline with the correction operations continuing and profit-reaping after it recorded its highest level more than four months earlier.

The dollar index traded at 92.83 points, down by less than 0.1% from today’s opening session at 92.89 points with the correction operations continuing and profit-reaping after hitting its highest level in more than four months at 93.43 points.

The American labor sector is expected to announce the monthly non-agricultural employment report for the month of March, and about 652,000 jobs are expected to be created compared to February, which recorded an addition of about 379,000 jobs.

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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