On Thursday, the EUR/USD remains in a consolidation period.
Following US data releases, the US Dollar Index remains below 92.50.
The focus moves to the June labor market report in the United States.
In the early European session, the EUR/USD pair fell to its lowest level since early April at 1.1838, but managed to recover. During the American trading hours, however, the pair lost its impetus at 1.1880 and began to fall. At the time of writing, the EUR/USD was trading at 1.1862, up a smidgeon on the day.
Earlier in the day, euro zone statistics revealed that the Markit Manufacturing PMI increased to 63.4 in June, exceeding market expectations of 63.1. In addition, Eurostat reported that the unemployment rate fell to 7.9% in May, compared to analysts’ expectations of 8%. The favorable impact of these bullish figures on the common currency, however, was short-lived.
The US Dollar Index (DXY), on the other hand, remains stuck in a narrow range below 92.50, preventing EUR/USD from making a dramatic move in any direction.
In the week ending June 26, the US Department of Labor’s weekly report revealed that initial jobless claims fell to 364,000, the lowest level in more than 15 months. Furthermore, the ISM Manufacturing PMI fell to 60.6 in June from 61.2 in May.
The Producer Price Index (PPI) data will be released on Friday in the European economic calendar. The Nonfarm Payrolls report for June will be released by the US Bureau of Labor Statistics.
“The dollar has potential to fall in response to June’s Nonfarm Payrolls report due to high expectations, unwinding of existing positions, and more,” FXStreet analyst Yohay Elam said ahead of the US jobs report.
NFP Predictions: Here are four reasons why June’s jobs data could be a downer for the currency./n
