The EUR/USD currency pair moved higher during the early part of the Asian session and as we enter into the European session support remains and the European currency may be on track to break a 3-day losing streak against the greenback.
With the market seemingly convinced that the Fed will continue to support the US economy by prolonging their bond buying program while at the same time leaving interest rates on hold, the focus will be on economic data from both sides of the Atlantic to drive the EUR/USD currency pair
The main news to look out for today will be the release of the Eurozone Services PMI numbers for July as well as retail sales figures. From the US will see the ADP employment report and the ISM Services PMI hit the market later during the American session.
Although we may see some movement in the EUR/USD surrounding this news, many traders will be reluctant to take large positions in either direction before the release of the non-farm payrolls figures on Friday which trumps all other news with regards to the state of the US economy.
The rapid spread of the Delta covid variant in the US and failure to pass US President Joe Biden’s infrastructure spending plan in the Senate is also keeping the US dollar well supported as investors seek out safety away from the riskier currencies.
Once again in yesterday’s trading session the Euro managed to break the $1.1881 level before facing solid resistance which has seen the currency pull back and remain within the trading range as shown on the chart.
As mentioned earlier, there is some movement expected with the release of various economic news today, but this range is expected to hold until Friday when the NFP is released to the market