Euro Slips Broadly as US Dollar Regains Upward Momentum
Euro slips broadly as the US dollar moves higher across the board. Nonfarm payrolls report and unemployment data due on Friday.
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- The euro declined against major currencies on Wednesday, EURUSD falls below 1.1600
- The American dollar gains strength as currency traders anticipate jobs data on Friday
EURUSD Slips Under 1.1600 amid Broad USD Strength
The European currency is trading lower today against other currencies in the market. In the early hours of today’s trading session, the EURUSD exchange rate slipped to a low of 1.1570. That being said, last week, the pair declined to a 15-month bottom near 1.1560.
To put this into perspective, since June, the EURUSD pair has tumbled over 5.5% as dollar strength has narrated the price action. Besides the euro, other currencies are also in decline due to the rising greenback.
The USDCHF reversed early-week losses and is now hovering near 0.93 on its second day in positive territory. The pair has been steadily rising over the past four months and has gained about 4% for the period.
The USDCAD is also moving higher on Wednesday. Looking to snap a four-day losing stretch, the US dollar has gained half a percent today against its Canadian counterpart.
Gold Drops, Bitcoin Rises
In the meantime, gold has turned lower today for a second straight day. Furthermore, the precious metal has been in a downtrend throughout the whole year. Since early January, the price of gold has lost about 11% of its value and is currently trading near $1,750 per troy ounce.
On the other hand, bitcoin has pushed above $51,000 today as October continues to surprise. So far in the month, the price of bitcoin has gained about 20% amid improving prospects for crypto.
Economic Outlook Brings Uncertainty
As the US dollar is once again in favor, traders fear the fourth quarter could bring significant risks in the financial markets. On that note, different asset classes have been experiencing heightened volatility going into the last three months of the year.
Elevated uncertainty is dominating across the markets fueled by persistent inflation and a global economic slowdown. Additionally, the US is facing a default for the first time in history if it fails to raise the debt ceiling. On top of that, Democrats in the US Senate are having a difficult time working on shrinking the $3.5tn infrastructure package.
What to Watch in the markets?
Moving into the final two days of the week, the market will be expecting the initial jobless claims on Thursday. Next, Friday brings the highly-important jobs and unemployment data for September. Both economic reports will highlight the pace of the economic recovery in the US.
Increased volatility and trading opportunities could be present around the two economic updates.
Looking Ahead into the Day (EST times)
Still today, the ADP nonfarm employment change is expected at 08:15. Later, at 10:30, the US will release crude oil inventories.