According to the US Nonfarm Payrolls data, the US added only 194K jobs in September. Sentiment shifted from negative to positive, hitting the currency as markets rallied.
The EUR/USD is consolidating losses at its 2021 bottom and has room to fall further. The EUR/USD weekly forecast is bearish as the US dollar continues to grind higher across the board while worrisome Eur figures remain a concern.
As the globe battles to combat the epidemic, the EUR/USD pair dropped to a new 2021 low of 1.1528. Because the recovery is unequal throughout the world, resuming economic activity will confront significant obstacles and supply chain interruptions.
The week was jam-packed with statistics, culminating on Friday with the US Nonfarm Payrolls report release. Unfortunately, it was a big letdown, as the country only gained 194K new employment in September, far less than the 500K forecast.
Following the announcement, the greenback came under selling pressure, but the EUR could not profit from the dollar’s wide weakening.
The German statistics were the most disappointing since the majority of them fell short of market forecasts. Factory orders were down 7.7% month over month in August, while industrial production was down 4%. The EUR/USD pair is still trading below 1.1600, and the weekly chart indicates that the pair is losing for the sixth week in a row.
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