The EUR/USD pair remained under pressure on Wednesday, struggling to maintain gains after a six-day losing streak. While a broader recovery in risk sentiment put downward pressure on the US Dollar, the Euro failed to find strong support, hovering around the 1.0400 level.
US labor market data provided a boost to investor confidence, as the ADP Employment Change report showed an unexpected increase of 183K jobs in January, surpassing the forecasted drop to 150K from December’s revised 176K. Though ADP figures are not a reliable indicator of the upcoming Nonfarm Payrolls (NFP) report, they reinforced expectations of US economic resilience.
Meanwhile, in Europe, investors are eyeing the upcoming Pan-European Retail Sales data for December, set for release on Thursday. Market expectations suggest an annual increase to 1.9%, up from 1.2%, while the monthly figure is projected to dip to -0.1% from 0.1%.
The key event for the week remains Friday’s US NFP report, where analysts anticipate a decline in job creation to 170K for January, down from December’s 256K. Revisions to previous figures will also be closely watched, as persistent labor market strength continues to frustrate those betting on Federal Reserve rate cuts.
EUR/USD Price Outlook
Despite starting the midweek session with a slight bullish bias, EUR/USD struggled to sustain momentum above 1.0450, with the 50-day Exponential Moving Average (EMA) acting as a resistance near 1.0445. The pair managed to rebound from an early-week drop toward the 1.0200 level but remains constrained by cautious trading ahead of key economic data releases.
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