Market news
01.09.2022, 02:47

EUR/USD oscillates above 1.0000 ahead of US ISM PMI, US NFP remains a key event

  • EUR/USD is juggling in an 11-pips range, downside remains favored amid firmer DXY.
  • Investors have trimmed manufacturing PMI forecasts due to rising interest rates by the Fed.
  • A jumbo rate hike by the ECB looks likely as eurozone HICP has landed higher-than-expected at 9.1%.

The EUR/USD pair has turned sideways as investors are awaiting the release of the US ISM Manufacturing PMI data. The asset is oscillating in a narrow range of 1.0020-1.0031 in the Asian session after a downside move from Wednesday’s high at 1.0076. In the Asian session, the major extended its losses after surrendering the potential support of 1.0040. More downside looks favorable as the US dollar index (DXY) is aiming to establish itself above the round-level resistance of 109.00.

The investing community is aware of the consequences of hiking interest rates with higher velocity by the Federal Reserve (Fed). As liquidity has been squeezed dramatically from the economy, the investment spree by the corporate sector has witnessed a hiatus. Therefore, investors are bracing for a decline in economic activities. According to the preliminary estimates, the US ISM Manufacturing PMI is seen lower at 52.0 than the prior release of 52.8.

While the show-stopper event for this week will be the US Nonfarm Payrolls (NFP). Ahead of more comprehensive and considered US NFP data, the unconventional US Automatic Data Processing (ADP) has reported 132k new job additions in August in the private sector, much lower than the expectations of 288k.This has also accelerated fears of a severe decline in the US NFP, which may halt the DXY’s stalwart rally.

On the Eurozone front, an escalation in Harmonized Index of Consumer Prices (HICP) to 9.1% has soared hawkish bets n European Central Bank (ECB). Next week, a bumper rate hike announcement by ECB President Christine Lagarde looks likely as the inflation chaos is highly needed to be fixed sooner.

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location