The Euro racked up some solid gains in yesterday’s trading session after weaker than expected jobs data backed up concerns voiced by US Federal Reserve president Jerome Powell in a speech last week about the US employment market.
In a pitch to the financial world, the Fed president noted that although the US economy was moving in the right direction, he was still concerned about the unemployment rate and jobs growth and yesterday’s ADP report seemed to have backed up his worries
The report showed that the US private sector added 374K new jobs in August, compared to analysts’ expectations for a figure of 613K and this has now led many to believe we will see a disappointing non-farm payrolls report due for release tomorrow and may see the Fed cut back on their tapering plans.
On the chart we can see that the Euro managed yesterday to break through the critical support level of $1.1839 and as we enter today’s European trading session the EUR/USD currency pair is currently struggling to find direction slightly above this mark
There is not much movement expected today in this currency pair as many traders are afraid to take positions before the non-farm payrolls and the Euro is likely to slip back down into its recent trading range between $1.1795 and $1.1839 as it gears up for tomorrow’s big day.