EUR/USD Price Waits for US NFPs, EUR/GBP Slides on Sterling Strength

EUR/USD AND EUR/GBP PRICES, NEWS AND ANALYSIS:

• EUR/USD consolidating near two-year highs.
• EUR/GBP struggling as Sterling pushes higher.

EUR/USD – A NEW TWO-YEAR HIGH

After hitting a new two-year high of 1.1916, EUR/USD is now trading in the middle of today’s range at 1.1865 and needs a new driver to make or break the recent rally. With the US dollar the main influence on the pair, Friday’s US Jobs Report is now key and will likely spark a fresh bout of volatility. Wednesday’s ADP report was a mixed bag with the July employment change disappointing – 167k vs expectations of 1500k – while the June number was revised sharply higher to 4314k from a prior 2369k. Last month’s nonfarm payrolls showed employment surging by 4.8 million in June, beating all analyst expectations by a wide margin. US President Donald Trump said yesterday that big jobs number was coming on Friday, so expect volatility in US dollar-related pairs. The data and events calendar and release times need to be closely watched for the rest of the week and fundamental analysis remains key.

EUR/USD is likely to tread water ahead of tomorrow’s release and any downside is likely to be limited. The pair have made higher highs and higher lows all week, while the CCI indicator shows that the market is no longer overbought. All three moving averages remain supportive and it will take a decent rally by the US dollar to push the pair much below 1.1800 and the recent double-low area just below 1.1700.

EUR/USD DAILY PRICE CHART (JANUARY – AUGUST 6, 2020)