The EUR/USD dropped further after the beginning of the American session and bottomed at 0.9817, the lowest level in two days. The intraday bias is bearish with the US dollar looking stronger ahead of the NFP.
On Thursday, economic data released in the US showed a larger-than-expected increase in Initial Jobless Claims to the highest level in five weeks. Despite the numbers, the dollar remains firm. Fed talk about the need to continue rising rates, keeps giving the dollar support.
The key drivers of dollar’s strength on Thursday are US yields. The US 10-year yield rose to the highest level in a week at 3.84% and the 2-year climbed above 4.20%. The DXY is up by 0.90%, at 111.20.
In Wall Street, US stocks area falling with the Dow Jones losing 0.47% and the Nasdaq down by 0.20%. The cautions tone also helps the dollar ahead of critical data on Friday. The US official employment report is due and its numbers could trigger more volatility. Market consensus is for an increase in payrolls of 250K.
The EUR/USD bottomed at 0.9817 and then bounced back above the 0.9830 area. A consolidation under 0.9830 would leave the euro vulnerable. The next support stands at 0.9800 and then 0.9780 before the barrier around 0.9750.
On the upside, at 0.9855 emerges a resistance area, followed by the 0.9900 zone. A recovery above would alleviate the bearish pressure.
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