EUR/USD RATE SUSCEPTIBLE TO STRONG US NFP REPORT
EUR/USD trades back below the 50-Day SMA (0.9873) after failing to test the September high (1.0198), and the exchange rate may struggle to retain the advance from the yearly low (0.9536) as it appears to be tracking the negative slope in the moving average.
At the same time, the NFP report may drag on EUR/USD as the US economy is anticipated to add 200K jobs in October, and signs of a resilient labor market may provide the Federal Open Market Committee (FOMC) with greater scope to pursue a highly restrictive policy as Chairman Jerome Powell emphasizes that “it is very premature” to pause the hiking-cycle.
