Market news
02.08.2023, 05:12

EUR/USD corrects below 1.1000 amid caution ahead of US labor market data

  • EUR/USD drops below 1.1000 amid cautious market mood ahead of US Employment data.
  • In spite of downgraded ratings by FITCH, the US Dollar Index has rebounded after a corrective move to near 102.00.
  • Outperformance by Eurozone in the April-June quarter on GDP parameter could force the ECB to raise interest rates.

The EUR/USD pair faces selling pressure above the psychological resistance of 1.1000 in the Asian session. The major currency pair comes under pressure as investors turn cautious ahead of the United States labor market data, which will be published at 12:15 GMT.

S&P500 futures posts significant losses in Tokyo, portraying a cautious market mood. US equities were under pressure on Tuesday as credit rating firm FITCH downgraded the United States economy. FITCH downgraded US ratings from ‘AAA’ to ‘AA+’ citing concerns about extended spending in forward years.

In spite of downgraded ratings, the US Dollar Index (DXY) has rebounded after a corrective move to near 102.00. The US Dollar Index rebounded on Tuesday despite a decline in US Job Openings and weak Manufacturing PMI data. US JOLTS Job Openings data were released at 9.582M against the prior release of 9.62M.

Meanwhile, US Manufacturing PMI contracted straight for the ninth month, landing at 46.4 below expectations of 46.8. Contrary to that, Factory Orders were recorded at 47.3 and outperformed expectations of 44.0.

On Wednesday, US Employment data will be in focus to be reported by the Automatic Data Processing (ADP) agency. Market consensus is for an increase in private payroll of 188,000; such a reading would be the slowest growth in four months and would follow the surprise of June that showed a super strong increase of 497,000.

On the Eurozone front, inflationary pressures deflated in July by 0.1% but outperformance in the April-June quarter on GDP parameters could force the European Central Bank (ECB) to raise interest rates further. Later this week, investors will keep an eye on Retail Sales data. An impression of solid consumer spending momentum would elevate hawkish ECB bets.

 

© 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