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EUR/USD consolidating ahead of U.S NFP data

Fri, May 06 2016, 06:04 GMT SzrnFX

The EUR/USD is seen consolidating the downside and now strives hard to build onto gains above 1.14 handle, the currency pair traded between 1.1386 and 1.1494, with the sharp losses, the euro dipped below 1.14 against the dollar for the first time this month. EUR/USD has followed a six-day winning streak from last week with a modest losing skid over the last three sessions. Over the last month, the euro is virtually flat against its American counterpart – up 0.11% during that span.

The EUR/USD pair finds support from negative sentiment seen on the Asian equities as tumbling oil prices weighed down on the resource and energy sector stocks. Moreover, adding to the risk-off market profile, a typical cautious scenario before the US jobs data also underpins the safe-haven bids for the euro.
Overnight, the dollar rose against a basket of currencies for a third day on Thursday as traders closed out profitable bets against the greenback before Friday’s U.S. payrolls report which may confirm the view the Federal Reserve will not raise interest rates soon.

All eyes remain on the main risk event for this week, the US payrolls data due later in the NA session. Markets are expecting a robust 200,000 increase in payrolls coupled with a respectable 0.3% gain in hourly wages. The US employment report will help the Fed on its next Fed rate hike decision.

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