The EUR/USD pair saw choppy price action on Thursday, briefly testing lower levels before settling near the 1.0400 mark. Despite the release of Eurozone Retail Sales data, which met market expectations, euro buyers showed little enthusiasm. Meanwhile, US dollar traders remained cautious ahead of Friday’s key Nonfarm Payrolls (NFP) report.
Eurozone Retail Sales grew by 1.9% year-over-year in December, in line with forecasts and slightly improving from the previous 1.6% reading. However, on a monthly basis, sales contracted by 0.2%, missing expectations and reflecting weaker consumer spending momentum.
In the US, economic releases were mostly mid-tier, with Initial Jobless Claims rising to 219K for the week ending January 31, surpassing expectations of 213K. The previous week’s figure was revised slightly higher to 208K.
Investors are now focused on Friday’s NFP report, which is expected to show a slowdown in job growth, with forecasts of 170K new jobs in January compared to December’s 256K. Market participants will also pay close attention to revisions in previous data, as past adjustments in 2024 have often surprised to the upside, dampening hopes for an economic slowdown that could push the Federal Reserve toward rate cuts.
EUR/USD Price Outlook
EUR/USD fluctuated on Thursday but ended the session down just 0.2%, remaining anchored near 1.0400. The pair continues to face resistance from the 50-day Exponential Moving Average (EMA) at 1.0440, limiting upside potential. While the euro recovered from an early-week drop toward 1.0200, bullish momentum remains weak, leaving the pair vulnerable to further downside pressure.
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