EUR/USD Rose Amid Weak U.S Jobs Data

Fundamental Analysis

* Dollar Dip: The Euro strengthened against the U.S. dollar after Friday’s release of weaker-than-expected Nonfarm Payroll data. The U.S. Bureau of Labor Statistics reported October’s NFP rose by only 12,000, following a downwardly revised increase of 223,000 in September (from the initial 254,000 estimate), falling short of market expectations of 113,000. The Unemployment Rate remained unchanged at 4.1% in October, matching forecasts. Additionally, the Euro also gained support from stronger-than-expected economic growth in Q3 and higher Eurozone inflation, prompting traders to reconsider the chances of a significant European Central Bank (ECB) rate cut in December. Preliminary data showed the Eurozone Harmonized Index of Consumer Prices rose to 2.0% year-over-year in October, up from 1.7% and beating the 1.9% forecast, while core inflation held steady at 2.7%. Besides that, Eurozone GDP grew by 0.4% quarter-over-quarter in Q3, double the Q2 growth and exceeding the 0.2% forecast.

Technical Analysis

* Technical Breakout: EURUSD was traded higher following prior breakout above the previous resistance level 1.08750. MACD which illustrate diminishing bearish momentum signal suggest the pair to likely further extend its gains.

* Resistance and Support: If the bullish momentum persists, there’s a strong likelihood that the price will potentially head towards the level 1.09550. Conversely, a potential reversal is also to be expected and the price could head back towards 1.08100 after it breach back below the level 1.08750.

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Potential Risks

Looking ahead, attention now turns to this week’s U.S. presidential election, where Democratic candidate Kamala Harris and Republican nominee Donald Trump are in a tight race across seven key battleground states, with just days remaining before the vote.

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Monitoring

Stay updated on US and Eurozone data, updates on the U.S. Presidential Election, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.

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Disclaimer: Trading derivatives involves high risks, and market conditions can change rapidly. The content is for informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consider risk management strategies.