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The EUR/USD pair continues its loss for the third day in a row, and fell to the 1.09370 level. The labour market in the US and in the EUR showed positive results this week and all eyes are now focusing on Friday’s NFP data in the United States.
The EUR/USD is trading in red territory after 3 consecutive days of losses that are based upon the stronger performance of the US dollar following robust labour market data. The dollar gained omoentum in the middle of the trading week and jumped to its highest label since July 7.
ADP data, measuring the change in the number of employed people in the US, came in at 324k, better than the expected 189k but below the previous 455k. With this in mind, hot labour market data may set the tone for the Fed to consider one additional hike in 2023, and that is what is driving the USD upwards.
Jobless Claims on Thursday and the Nonfarm Payrolls report on Friday will give additional clues to the markets regarding the labour situation in the US and will continue placing their bets for the next Fed meeting.
on the Eurozone’s front, Spain released the Unemployment Change for July, which showed that the number of unemployed workers added during the previous month, came in better than expected. This comes after Germany also reported strong labour figures on Tuesday. Christine Lagarde highlighted that the labour market remains robust and also mentioned that incoming data will be considered for the following interest rate decisions, so strong data may fuel hawkish bets on the European Central Bank (ECB).
For the rest of the week, Services PMIs from European countries will be released on Thursday, giving further guidance to both markets and the ECB regarding the economic activity situation in the Eurozone.
