EUR/USD prepares for an upside towards 0.9900 as DXY turns subdued, US NFP eyed
- EUR/USD is aiming to kiss the critical hurdle of 0.9900 amid weaker DXY.
- Lower consensus for the US NFP is denting the DXY’s appeal.
- Brussels expansion plans for EU nations will continue to support the trading bloc.
The EUR/USD pair is hovering around weekly highs of 0.9850 and is preparing to cross the same to smash the critical hurdle of 0.9900. The asset has turned sideways in a narrow range of 0.9735-0.9850 after a firmer rebound. Odds are favoring an upside break of the consolidation as the US dollar index (DXY) is going through a rough phase amid a slowdown in the US economy due to escalating interest rates by the Federal Reserve (Fed).
A decline in the US ISM Manufacturing PMI data has dented the DXY’s appeal. The economic data has declined firmly to 50.9 vs. the expectations of 52.2 and the prior release of 52.8. Apart from that, the economic catalyst that illustrates the forward demand has also weakened. The US ISM New Orders Index landed significantly lower to 47.1 against the projections of 49.6 and the former figure of 51.3.
This week, the show-stopper event will be the US employment data, which will release on Friday. The projections claim the US economy has added 250k jobs in the labor market vs. the former print of 315k. Projections for employment generation have scaled down sharply led by soaring interest rates, which have forced the corporate to ditch the recruitment process due to postponement of expansion plans.
Meanwhile, eurozone bulls have cheered the proposal of stretched debt reduction scheme by Brussels to execute more development programs. Financial Times on Monday reported that Brussels wants to give EU capitals extra time to curb their debts and create space for public investment as part of a major overhaul of the EU’s deficit rules.”
On the economic data front, investors are awaiting the release of the German Retail Sales data, which is expected to decline by 1.7% against a decline of 0.9% reported earlier.