Important points:
- Euro falls below $1.03
- Markets focus on impending jobs report
- The outlook for the euro remains bleak
Expectations for employment growth are not very high, and a solid increase above this could confuse currency speculators. Here's what you need to know:
- of
euro dollar pair The stock held steady below $1.03 as traders and investors in the state returned from a vacation commemorating the passing of 39th U.S. President Jimmy Carter. Volume was still low and volatility wasn't even an issue as the forex market was catching up and preparing for what was to come. And several important events lie ahead: the December nonfarm payrolls report. - Notorious market-moving eventsNonfarm payrolls are a reliable indicator of the health of the U.S. economy. Analysts note that the number of new jobs created in December will reach 154,000, which is lower than the 227,000 jobs created in November. Forex markets are generally very sensitive to employment data, so prepare for a rush of volatility later today, especially if the numbers deviate significantly from expectations.
- In this contextthe euro continues to be weak against the dollar's strength. The EURUSD fell for the fourth day in a row, wiping out about 1.4% (about 150 pips) from its valuation. The outlook for the euro is not so bright either. A continuation of the European Central Bank's rate cut cycle threatens to undermine the bullish view on Old Continent currencies, at least for the foreseeable future.
