EUR/USD must go up, recovery in US jobs to strain the greenback

EUR/USD has been rising above the uptrend support line and is moving up above 1.13 as optimism about a coronavirus vaccine outweighed cases. Today, all eyes are on US Nonfarm Payrolls, which are set to continue recovering and, therefore, pushing the greenback lower, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“Pfizer and BioNTech have reported promising results in their first trial of four COVID-19 vaccines. The two firms said subjects developed antibodies and will proceed with testing of the most successful candidates.” 

“President Trump seemed to have endorsed wearing face masks, saying he would do it and he does it. The U-turn from the Commander-in-Chief may help mitigate the disease. Goldman Sachs estimated that face covers could significantly substitute lockdowns and boost GDP by as much as 5%.” 

“The need for protection comes amid yet another record day of US cases – over 50,000. Texas has suffered the highest death rate in six weeks as hospitals in Houston are already above normal capacity. Arizona, Florida, and California are additional hotspots.”

“Economists expect the NFP figures to show an increase of three million in June, following the increase of 2.509 million in May. The Unemployment Rate carries expectations for a drop from 13.3% to 12.3% and is of political importance ahead of the presidential elections due in four months. The market mood is upbeat and an increase in US jobs may keep it that way – pushing stocks higher and the safe-haven dollar lower. However, investors may return to fear about the virus, especially if labor figures miss expectations.”