Eurusd Close To Resistance After Ism

Eurusd Close To Resistance After Ism by Adam Rosen last updated on January 21, 2024

Eur/Usd Close To 1.100 As Us Ism Disappoints

Friday's session was a seesaw ride for EUR/USD as it first jumped to multi-day highs only to turn lower near 1.0876 after the US labour market data. This was followed by the US Services PMI, which then sent the pair higher towards the 1.100 handle.

After the US PMI data, the EUR/USD gained 0.30% upside, which is a sign that investors ended the week by selling the greenback.

Strong Jobs Data But Weak Us Ism

The BLS report showed an addition of 216K jobs in December, followed by an unemployment rate of 3.7%. A closer look at the BLS report shows that the average hourly earnings also moved from 3.9% to 4.1% (+0.2% change). After the BLS report, the EUR/USD traded at nearly 1.0960.

This was followed by the ISM Services PMI, which was below the market's forecasts. The reading showed a 6-months low, which was not good for the greenback.

After the disappointing data, the EUR/USD increased near 1.0998 only to experience profit-taking. The pair is still above the 1.0990 handle and is now eyeing the 1.10 handle.

At the same time, the data from the EU showed inflation of 2.9%, which was in line with the expectations. The core inflation figure from the Euro Zone also moved lower, near 3.4%, which was also in line with the market's view. That also lowers the Euro/Dollar as rumours of no rate cuts have no basis anymore.

Looking forward, the market will look towards the inflation data from the US, followed by initial jobless claims, to figure out the EUR/USD's next direction.

If someone tries to decipher the movement of the EUR/USD on Friday, it will lead to the conclusion that the pair achieved nothing! The EUR/USD closed lower than its opening price of 1.09138.

Next week, the 1.0960 - 1.0970 will remain relevant as that's the most significant area for EUR/USD bulls.