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

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