EUR/USD Corrects As USD Bounces Back Ahead Of US NFP
EUR/USD corrected below 1.1000 during European trading hours on Friday (4/4) after posting a fresh six-month high of 1.1145 the previous day. The major currency pair corrected as the US Dollar (USD) recovered from the tariff-driven sell-off by US President Donald Trump and ahead of the March Nonfarm Payrolls (NFP) data and Federal Reserve (Fed) Chairman Jerome Powell’s speech due later in the North American session.
The US Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, recovered to near 102.60 from a six-month low around 101.25.
Economists expect the US economy to have hired 135,000 new workers in March, down from 151,000 in February. The Unemployment Rate is expected to remain steady at 4.1%. Average Hourly Earnings are expected to grow at a slower pace of 3.9% year-on-year compared to the 4% increase seen in February, with the monthly figure rising steadily by 0.3%.
The impact of the employment data is expected to be limited on market expectations of the Fed’s monetary policy outlook unless there is a dramatic shift in the labor market figures, as investors are more concerned about potential inflation risks.
Source: FXXStreet
