EUR/USD oscillates above 1.0000 ahead of US ISM PMI, US NFP remains a key event

• EUR/USD is juggling in an 11-pips range, downside remains favored amid firmer DXY.
• Investors have trimmed manufacturing PMI forecasts due to rising interest rates by the Fed.
• A jumbo rate hike by the ECB looks likely as eurozone HICP has landed higher-than-expected at 9.1%.

The EUR/USD pair has turned sideways as investors are awaiting the release of the US ISM Manufacturing PMI data. The asset is oscillating in a narrow range of 1.0020-1.0031 in the Asian session after a downside move from Wednesday’s high at 1.0076. In the Asian session, the major extended its losses after surrendering the potential support of 1.0040. More downside looks favorable as the US dollar index (DXY) is aiming to establish itself above the round-level resistance of 109.00.

The investing community is aware of the consequences of hiking interest rates with higher velocity by the Federal Reserve (Fed). As liquidity has been squeezed dramatically from the economy, the investment spree by the corporate sector has witnessed a hiatus. Therefore, investors are bracing for a decline in economic activities. According to the preliminary estimates, the US ISM Manufacturing PMI is seen lower at 52.0 than the prior release of 52.8.

While the show-stopper event for this week will be the US Nonfarm Payrolls (NFP). Ahead of more comprehensive and considered US NFP data, the unconventional US Automatic Data Processing (ADP) has reported 132k new job additions in August in the private sector, much lower than the expectations of 288k.This has also accelerated fears of a severe decline in the US NFP, which may halt the DXY’s stalwart rally.

On the Eurozone front, an escalation in Harmonized Index of Consumer Prices (HICP) to 9.1% has soared hawkish bets n European Central Bank (ECB). Next week, a bumper rate hike announcement by ECB President Christine Lagarde looks likely as the inflation chaos is highly needed to be fixed sooner.