EUR/USD holds below 1.1300 on firmer US Dollar, all eyes on US NFP data

FXStreet
Updated
Mitrade
coverImg
Source: DepositPhotos

  • EUR/USD loses ground to near 1.1290 in Friday’s early Asian session.

  • US seeks tariff talks with China, raising hope for a de-escalation trade war.

  • Traders await the US April Nonfarm Payrolls report later on Friday. 


The EUR/USD pair softens to around 1.1290 during the early Asian session on Friday. The US Dollar (USD) edges higher against the Euro (EUR) amid optimism about a de-escalation in the global trade conflict. All eyes will be on the US April Nonfarm Payrolls (NFP) report, which is due later on Friday. 


A social media account affiliated with Chinese state media said on Thursday the United States (USA) has reached out toChina to begin negotiations regarding US President Donald Trump’s 145% tariffs. US officials, including Treasury Secretary Scott Bessent and White House economic adviser Kevin Hassett, also expressed hope for progress in easing trade tensions. This, in turn, provides some support to the Greenback and creates a headwind for the major pair. 


US data released on Thursday were mixed. The US weekly Initial Jobless Claims for the week ended April 26 rose by 241,000, compared to the previous week's 223,000 (revised from 222,000), according to the US Department of Labor.This figure came in above the market consensus of 224,000. Meanwhile, the ISM Manufacturing Purchasing Managers’ Index (PMI) declined to 48.7 in April from 49.0 in March, beating the market expectation of 48.


On the Euro front, traders have almost priced in a 25 basis points (bps) rate cut by the European Central Bank (ECB) in the June policy meeting. ECB officials have forecasted a further slowdown in inflation and economic growth in response to tariffs imposed by the US on its trade partners. The rising bets of further ECB rate cuts might weigh on the shared currency in the near term.


The US NFP report will take center stage later on Friday. The US is expected to have added 130K new job positions in April, while the Unemployment Rate is estimated to stay at 4.2%, unchanged from March. In the case of a softer-than-expected reading, this could undermine the USD against the EUR. 


* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
USD/CAD Price Forecast: Tests 1.3800 support after pulling back from nine-day EMAThe USD/CAD pair retraces its gains registered in the previous session, trading around 1.3810 during the early European hours on Friday.
Author  FXStreet
4 hours ago
The USD/CAD pair retraces its gains registered in the previous session, trading around 1.3810 during the early European hours on Friday.
placeholder
Dollar and stocks head for 3rd straight weekly win as US-China trade deal hopes riseThe dollar and U.S. stock market are grinding toward their third straight weekly win, thanks to rising talk that the U.S. and China might actually return to the table for trade talks. Early Friday, Asian markets caught fire. The Australian dollar rose hard, up 0.5% to $0.6412. New Zealand’s kiwi moved too, gaining 0.4% to […]
Author  Cryptopolitan
4 hours ago
The dollar and U.S. stock market are grinding toward their third straight weekly win, thanks to rising talk that the U.S. and China might actually return to the table for trade talks. Early Friday, Asian markets caught fire. The Australian dollar rose hard, up 0.5% to $0.6412. New Zealand’s kiwi moved too, gaining 0.4% to […]
placeholder
Pound Sterling rebounds against US Dollar on optimism over US-China tradeThe Pound Sterling (GBP) bounces back to near 1.3320 against the US Dollar (USD) on Friday after a three-day correction.
Author  FXStreet
4 hours ago
The Pound Sterling (GBP) bounces back to near 1.3320 against the US Dollar (USD) on Friday after a three-day correction.
placeholder
Forex Today: US Dollar retreats ahead of critical April employment dataAfter reaching its highest level in three weeks near 100.40 on Thursday, the US Dollar (USD) Index corrects lower to start the European session on Thursday.
Author  FXStreet
4 hours ago
After reaching its highest level in three weeks near 100.40 on Thursday, the US Dollar (USD) Index corrects lower to start the European session on Thursday.
placeholder
GBP/USD posts modest losses below 1.3300 ahead of US NFP releaseThe GBP/USD pair drifts lower to near 1.3275 during the Asian trading hours on Friday. The positive developments surrounding US-China trade talks provide some support to the US Dollar (USD).
Author  FXStreet
11 hours ago
The GBP/USD pair drifts lower to near 1.3275 during the Asian trading hours on Friday. The positive developments surrounding US-China trade talks provide some support to the US Dollar (USD).
Real-time Quote