The single European currency holds Thursday’s gains as it tries to approach the 1.09 level in anticipation of the all-important news on US new jobs later in the day.
Central bank meeting, announcements on the course of inflation and on the course of economic growth, although they are considered important news and are high on the agenda, they could not give any specific direction to the pair, which generally remains between the levels of 1,08-1,09 with small deviation on either side.
The US currency’s mild upward momentum could not be sustained and although the 1,08 level was broken down yesterday for the second time, the European currency returned to a correction environment which was not surprising since as I have mentioned in previous articles it continues to be a feature that comes to the table with excellent fidelity.
The exchange rate has further digested the current levels and is really looking for the catalyst where the pair will take some direction.
Neither President Powell’s remaks nor yesterday’s economic data managed to significantly change the bets, even though temporarily the US dollar was in the foreground as the possibility of the Fed cutting its key interest rates in March have been removed further.
At the same time, the European currency found further support from the return of international stock markets to better prices after Wednesday’s sell-off.
At the close of the week the market eagerly awaits the announcement of new jobs in the US in order to confirm or not that the labor sector remains strong and remains one of the main pillars of the US economy which has so far managed to maintain enough economic data at satisfactory levels, maintaining a significant difference compared to the corresponding Europeans one.
In recent months the NFP data have surprised positively several times, if this happens and today it is very likely that the last reaction of the European currency will be called into question and the US currency will come back to the fore again.
