EUR/USD is working its way back up in small steps. Economists at Commerzbank analyze the pair’s outlook.
While the US has provided positive impulses in the form of positive labor market data and hawkish comments, the economic data from the Eurozone looks unfavorable at best.
The fact that the USD’s strength has not continued, despite the continued hawkish comments from Fed officials, is likely due to the fact that the comments brought little news and the market has made up its mind about the Fed. More significant moves will likely require new data to support the officials’ statements. Today’s initial jobless claims are unlikely to be enough for a reassessment unless there is a significant surprise.
Friday’s US payrolls are likely to be too much of an echo. And on the Euro side, there is still no major data on the agenda. As a result, EUR/USD may rise a bit today, but the Euro side is hardly contributing, which limits the upside potential for the time being.
