Euro slips ahead of jobs report

The euro is off versus the US dollar as traders gear up for the non-farm payrolls and unemployment report at 1.30pm (London time) today.

The currency pairing EUR/USD is currently trading at $1.3565, down 0.15%, and it is not unusual to see low volatility and trading volumes in the run-up to these important numbers. The consensus is for an increase of 180,000 jobs, with unemployment remaining at 6.7%. Last month’s report took traders by surprise – the non-farm payrolls figure came in well below estimates, as did the unemployment rate.

The Federal Reserve has tapered its bond-buying scheme twice in the past two months, and if today’s reports are strong it could suggest that more tapering is likely in the future.

The euro came under pressure yesterday, as there is speculation that the European Central Bank will introduce a stimulus package in order to deal with deflation.

Overnight, the euro has been trading within a tight range of $1.3580 and $1.3560. As Alastair McCaig suggested, a drop below $1.3475 could be an indication to go short.

Brenda Kelly will be hosting a non-farm payrolls webinar at 12.45pm (London time), and will be providing commentary on the report and its impact on the euro versus the US dollar. Register for the webinar.

Spot FX EUR/USD chart

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.

Find articles by analysts