EUR/USD gyrates in a 0.9750-0.9850 range as focus shifts to US NFP data

• EUR/USD is going through a tad wider range bound moves in a 100-pips territory ahead of US NFP data.
• A downbeat US ISM Manufacturing PMI data has weakened the DXY.
• Eurozone bulls are awaiting the release of the German Retail Sales data.

The EUR/USD pair is witnessing topsy-turvy moves in a wider range of 0.9750-0.9850 from the past two trading sessions. The asset has turned sideways as investors are preparing for the release of the mega event of US Nonfarm Payrolls (NFP) data this week. The major is displaying a balanced auction profile and is expected to convert into an imbalanced bullish move sooner.

On Monday, the US dollar index (DXY) witnessed an intense sell-off as a pullback move to near 112.50 was capitalized by the market participants as a selling opportunity. The DXY printed a fresh weekly low at 111.47 after the release of downbeat US ISM Manufacturing data.

The economic PMI data declined to 50.9 vs. the expectations of 52.2 and the prior release of 52.8. As interest rates are escalating by the Federal Reserve (Fed), the extent of manufacturing activities is declining. Also, corporate have postponed their expansion plans too. Apart from that, weaker New Orders Index data has also plunged. The economic indicator that reflects forward demand for manufacturing activities slipped to 47.1 against the projections of 49.6 and the former figure of 51.3.

Going forward, the release of the US employment data will be of utmost importance. The US NFP is seen lower at 250k vs. the prior release of 315k. While the Unemployment Rate is seen stabilizing at 3.7%.

On the Eurozone front, the Eurozone Retail Sales data will be of utmost importance. The economic data is expected to decline by 1.7% against a decline of 0.9% reported earlier. In times, when the inflation rate is mounting firmly, a decline in Retail Sales is a cause of worry.