Previous:
On Thursday the 31st of August, trading on the euro/dollar currency pair closed up. After dropping to 1.1823, the euro recovered 82 pips to reach 1.1905. I think that the pressure on the US dollar came more from the loonie than from the mixed US data.
The Canadian dollar rose by 1.6% against its US counterpart after the publication of Canadian GDP data. This acted as a driver for the other major currencies against the greenback. The GDP index grew by 0.3% over the course of the month, and 1.1% over the second quarter, its biggest rise in 6 years.
US data:
Day’s news (GMT+3):
EUR/USD rate on the hourly. Source: TradingView
Thursday turned out to be rather volatile ahead of the monthly US payrolls report. After a sharp bounce from 1.1823, a daily pin bar formed. On the hourly timeframe, the pin bar shows up as a V-model. It’s a reversal pattern, but it probably won’t dictate price dynamics as today’s key event is the payrolls.
With strong US data, the euro should renew yesterday’s minimum of 1.1823. With weak data, we’ll see the euro return to 1.1990. I don’t make forecasts for the currency market on payrolls day since the indicator has a strong influence on the currency market due to its unpredictability as well as the constant revision of the previous two months’ values.
