The Euro (EUR) strengthened against the US Dollar (USD) on Thursday, closing higher after a midday slump. This came amidst a shift towards riskier assets, which pressured the USD. Investors are now cautiously waiting for the release of the highly anticipated April jobs report from the US, the last major economic data of the week.
UP COMING ECONOMIC CALENDAR NEWS
(Source: myfxbook)
However, financial markets remained indecisive with gold (XAU/USD) stuck near $2,300. The US Dollar fluctuated throughout the day, rising with positive sentiment but falling on any hint of bearish news. This overall lack of direction reflects the Federal Reserve’s (Fed) unclear message on Wednesday. While the Fed announced a slower reduction in its bond holdings, it left interest rates unchanged.
The report, focusing on Nonfarm Payrolls (NFP), is expected to show a rise of 238,000 new jobs, following a strong increase of 303,000 in March. A higher-than-expected NFP figure could boost the USD and dampen the Euro’s rally and Gold dumping. Conversely, a weaker-than-expected report, possibly around 150,000, could further weaken the USD and potentially push the Euro and Gold even higher.