The EUR/USD pair is the most liquid currency pairs in the world. Every day deals worth billions of dollars are made between the United States and the European Union. This year, the pair has lost more than 2% as demand for the dollar increases. This has happened as companies bring billions of dollars from overseas. It has also happened as the Federal Reserve under the new Fed chair seems more hawkish than during his predecessor.
This week, the focus among traders will be on the US employment numbers. Traders will want to know whether the momentum among employers is increasing or not. This is because of the ongoing trade issues are likely to hamper how employers hire. They will also want to know whether the wages and the participation rate has improved in the past month.
Experts have warned that the trade war will have major implications in the labour market. On Friday, General Motors sent a message to Donald Trump saying that the ongoing trade war will lead to more job losses. In the week, Harley-Davidson announced that it would move some of its operations overseas. Other companies have announced such similar measures. On a positive side, some global companies have come to the US. Last week, Trump took part in a ground-breaking ceremony for Foxconn which will employ more than 15,000 people.
Late last week, the euro started to gain against the dollar. The pair managed to recover most of the losses that happened during the beginning of the week and reached 1.1685. The current price is above the 15 and 21-day moving average and the pair is forming the cup and handle pattern. In the short-term, the pair could continue moving up. Traders should watch out for the next resistance level of 1.7200.