EUR/USD in a phase of bearish consolidation around 1.0850, US NFP eyed
- EUIR/USD keeps suffering on unabated US dollar demand.
- Coronavirus fed risk-off boosts the safe-haven appeal of USD.
- Next of note remains the Eurozone Services PMIs ahead of US NFP.
With the US dollar bulls taking a breather following the latest upsurge, EUR/USD is licking its wounds ahead of the European open. The spot trades close to the six-day lows reached Thursday at 1.0820, as it awaits the critical US data for the next direction.
US dollar undeterred by downbeat US data
The US dollar rallied to the highest levels in six days against its six major rivals on Thursday, as the safe-haven demand for the buck remains unabated amid intensifying coronavirus spread and its growing risks on the global economy.
A jump of 6.648 million in the US Initial Jobless Claims fail to deter the dollar rally, as the total number of virus cases globally surpassed 1 million, with over 50k deaths reported, further fueled the risk-averse market conditions. The US dollar index now trades at 100.25, having reached a multi-day high at 100.40.
On the EUR-side of the story, despite the improving health situation in Italy, Spain remains a big concern now while markets have already priced in a recession in the European economies, especially in Germany. The lockdowns across Europe are heavily weighing on its economic activities.
Looking ahead, the USD dynamics will continue to play a pivotal role, as attention shifts to the Euro area Final Services PMI reports, US Non-Farm Payrolls and ISM Non-Manufacturing PMI data due later this Friday.
EUR/USD technical levels to watch