EUR/USD cautious ahead of NFP – Danske Bank

Senior Analyst at Danske Bank Sverre Holbek noted today’s US Payrolls should be critical for the next move in EUR/USD.

Key Quotes

“In the majors, the more hawkish tone from ECB President Mario Draghi yesterday lent broad support to EUR, for example pushing EUR/USD temporarily above 1.06”.

“However, today could see a returned focus to the theme of the week, which has been the broad USD strength on the back of the expectation of a Federal Reserve rate hike on Wednesday, as a strong US jobs report is likely to cement this move”.

“Although much is already priced in on next week’s FOMC meeting, we do look for EUR/USD to stay in the vicinity of the 1.05 level”.