EURUSD at four-week high before the US jobs data

Last Updated on September 6, 2021

EURUSD extended its gains in the morning of Friday’s trading in the European market and recorded the sixth consecutive daily rise, reaching its highest level in four weeks, with the increase in purchases on high-risk currencies and avoiding buying the US currency, amid Investors are looking forward to the US non-farm payrolls data, which will give more clues about the future of monetary policy in the US.

EURUSD continues to gain

EURUSD

The EURUSD pair traded at $1.1884, the highest in a month, rising by 0.1% from the opening level of today’s session at $1.1875, and it closed yesterday’s trading, achieving 0.3% gains against the US dollar for the fifth consecutive day, supported by strong European data.

With the end of trading on Friday, the single currency is heading towards recording the second consecutive weekly rise, with gains estimated at 0.75%.

The possibilities increased that the European Central Bank would begin to reduce its stimulus program and move towards tightening monetary policy, especially after the data issued by the European economy on inflation rates, which showed that the consumer price index rose to its highest level since November 2011.

The US dollar continues its losses ahead of the employment data

The US dollar continues to decline against a basket of major currencies in the morning of Friday’s trading, hitting its lowest level in nearly a month, and this comes amid the markets’ anticipation of the non-farm jobs report for the month of August.

The dollar index traded at 92.15 points, the lowest since the beginning of August, down by 0.1%.

For about the month of August, the US dollar was making gains supported by the increasing rise in cases of the Coronavirus, but it witnessed a decline from its highest levels in more than 9 months due to the statements of many monetary policy officials that the continued spread of cases of Coronavirus may lead to a slowdown in tightening. monetary policy.

Federal Reserve Chairman Jerome Powell said during the Jackson Hole conference last week that it is likely to start reducing the stimulus program later this year, but stressed not to rush into the timetable to start raising interest rates.

The US Department of Labor is due to reveal the non-farm payrolls report for August, and it is expected that about 750 thousand jobs will be added, and the unemployment rate will decline to 5.2% from 5.4%.

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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