EUR/USD extends the rebound from earlier cycle lows. The US Non-farm Payrolls rose by 372K jobs in June. The unemployment rate remained at 3.6%.
Despite the rebound from lows, the selling interest around the single currency remains well and sound and motivates EUR/USD to keep the price action subdued around 1.0100/15 at the end of the week.
EUR/USD still faces a potential drop to parity. The EUR/USD pair keeps the negative stance on Friday after the release of the Nonfarm Payrolls showed the US economy created 372K jobs during June, surpassing initial estimates for a gain of 268K jobs. The May reading was revised down to 384K (from 390K).
Further data saw the jobless rate unchanged at 3.6%, and the key Average Hourly Earnings – a proxy for inflation via wages – rise 0.3% MoM and 5.1% from a year earlier. Additionally, the Participation Rate eased a little to 62.2%.
Bears maintain the EUR/USD under heavy pressure, and the acceleration of the downside opens the door to a probable visit to the parity level sooner rather than later.
The pair’s price action remains depressed and keeps closely following rising speculation around a probable recession in the region, dollar dynamics, geopolitical concerns, fragmentation worries and the Fed-ECB divergence.
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