EUR/USD bulls retreat ahead of NFP data

Ahead of important US data inputs, the EUR/USD is stagnant. The crucial Nonfarm Payrolls are now the main topic of discussion.

In late New York, the EUR/USD is trading at its lowest point of the day amid holiday calm. At hourly resistance, the pair is currently trading at 1.0930. The pair has traveled between a low of 1.0884 and a high of 1.0937. The focus at this point is the pivotal Nonfarm Payrolls and the impact of the Federal Reserve´s policy.

The dollar has been pressured of late following a week of troublesome data. As a prelude, the ADP National Employment report showed US private employers hired fewer workers than expected in March, suggesting a cooling labour market.

According to Reuters, private employment climbed by 145,000 jobs last month compared to the 200,000 jobs predicted by economists surveyed by Reuters. The ISM’s Non-Manufacturing index also declined from 55.1 in February to 51.2 in March. The employment indicator for the services sector fell as well, to 45.8 from 47.6 in February.

Looking ahead, the focus will be on US inflation. According to analysts at TD Securities, core prices likely moderated in March, but the index continued to rise strongly month over month, increasing by 0.4%. This is because we expect recent relief from goods deflation to turn into inflation this month.