The Euro made somewhat of a recovery in yesterday’s trading session before giving up most of the gains after better than expected manufacturing figures from Germany and the Eurozone as a whole gave the currency a temporary boost.
Markit manufacturing figures from Europe’s largest economy and the Eurozone both came in slightly above analysts’ expectations and were also up from the previous month, which continues a trend of recovery for the business sector on the back of the coronavirus
The party however was short lived, and after reaching a high of $1.1883 the currency was quickly sold off and ended the day towards the lowest levels of last week at $1.1847.
It was always going to be a tough job for the Euro to remain in an uptrend in light of today’s release which is the non-farm payrolls report from the US.The market is expecting a figure of 690,000 jobs in June, well above the previous figure of 559,000 and with such strong expectations, it is hard to see the Euro gaining any ground higher in today’s trading session until the news hits the market.
Also keeping the dollar well bid is the growing list of Federal Reserve members who believe the US economy is well on the road to recovery and are calling for a reduction of the bank's bond-buying scheme with the latest member being Patrick Harker.
The Euro against all odds, did manage to break through the $1.1850 mark in yesterday’s trading session which was formerly a support level and has now become a critical resistance level.
Unfortunately, in today’s session, the currency is once again struggling to break this level and will have a tough time doing so before the release of the NFP later today. Until the news is released, a trading range between $1.1850 and the next resistance level of $1.1814 is expected with a big movement afterwards.