EUR/USD falls below 1.1600 as Dollar strengthens ahead of US NFP
The EUR/USD registers loses during the North American session down 030% as the Greenback enjoys a healthy recovery on speculation that the Federal Reserve might hold rates unchanged. The pair trades at 1.1589 after reaching a daily high of 1.1624.
Euro slips 0.30% as rising risk aversion and renewed Fed caution lift the Greenback into the new trading week.
Risk aversion keeps the US Dollar bid as the US government reopening unleashes a flood of data, led by the release of the Nonfarm Payrolls report on Thursday. The US Bureau of Labor Statistics (BLS) will release those figures, and the Real Earnings print on Friday. Meanwhile, investors bought Greenback amid fears of a possible AI bubble, with NVIDIA set to release earnings on Wednesday, which could set markets mood ahead of US crucial data.
The US schedule is light on Monday, except for Federal Reserve officials. Vice-Chai Philip Jeffers was slightly dovish, while Fed Governor Christopher Waller supports the continuation of the easing cycle at the December’s meeting.
Earlier, the New York Fed released the Empire State Manufacturing index for November, improving with current business conditions faring better than expected
European Central Bank Vice President Luis de Guindos expressed confidence that Eurozone inflation is on track to converge toward the ECB’s price-stability target. Still, he warned that rising tariffs and elevated sovereign debt levels pose risks and potentially impact an abrupt shift in market mood.
Source: Fxstreet
