Euro strengthens above 1.1550 as softer US data
The EUR/USD pair edges higher to near 1.1555 during the Asian trading hours on Thursday. US Dollar (USD) softens against the Euro (EUR) on cooling tensions in the Middle East and weaker-than-expected US economic data. The US Initial Jobless Claims report is due later on Thursday.
The Euro rose to nearly 1.1555 during Asian trading hours on Thursday, as the US Dollar weakened. This came after easing tensions in the Middle East and disappointing US economic data. Iran and Oman were reportedly nearing an agreement for maritime shipping through the Strait of Hormuz, which could boost risk sentiment. However, even if the deal materializes, it won't automatically open the waterway.
US jobs data, released by ADP, showed a 44K increase in private sector employment for July, below expectations. The Services PMI also fell short of forecasts. Traders will closely monitor Friday's US jobs report, as a stronger-than-expected outcome could bolster the Dollar and restrain its decline. Scotiabank economists view the Euro as stable, inching higher in the mid/lower 1.15 range.
Fed Chair Jerome Powell's speech scored 7.2/10 on the FXS Speechtracker, indicating a slightly more aggressive tone than usual. The Fed Sentiment Index slipped 1.93 points to 140.92, showing a modest hawkish adjustment while still remaining in the hawkish zone. EUR/USD trades just below its 100-day SMA, with the pair facing resistance around 1.1570 and support near 1.1450.
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