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4 Sep 2015
EUR/USD forecast: attention to Payrolls – Commerzbank and Danske Bank
FXStreet (Edinburgh) - EUR/USD is navigating a narrow range in the low-1.1100s so far, with market participants warming up for today’s Non-farm Payrolls figures.
“EUR-crosses took a beating on yesterday’s dovish ECB meeting where the change in purchase limits and comments on the possibility of further actions weighed on the single currency… The close connection to risk assets sent EUR/USD markedly higher in the end-August risk sell-off but now the cross is back at mid-August levels. Today the cross will also take centre stage as non-farm payrolls figures are released in the US. If we are right in our below-consensus call we could see EUR/USD end the day slightly higher”, suggested Kasper Kirkegaard, Chief Analyst at Danske Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “came under further downside pressure post ECB. It has sold off to and eroded the top of the cloud at 1.1124 to reach the 55 day ma at 1.1096. Our attention has reverted to the base of the cloud circa 1.1006. This guards the base of the channel at 1.0897. Near term rallies should now struggle 1.1330, 1.1460/70”.
“EUR-crosses took a beating on yesterday’s dovish ECB meeting where the change in purchase limits and comments on the possibility of further actions weighed on the single currency… The close connection to risk assets sent EUR/USD markedly higher in the end-August risk sell-off but now the cross is back at mid-August levels. Today the cross will also take centre stage as non-farm payrolls figures are released in the US. If we are right in our below-consensus call we could see EUR/USD end the day slightly higher”, suggested Kasper Kirkegaard, Chief Analyst at Danske Bank.
In addition, Karen Jones, Head of FICC Technical Analysis at Commerzbank, noted the pair “came under further downside pressure post ECB. It has sold off to and eroded the top of the cloud at 1.1124 to reach the 55 day ma at 1.1096. Our attention has reverted to the base of the cloud circa 1.1006. This guards the base of the channel at 1.0897. Near term rallies should now struggle 1.1330, 1.1460/70”.