The EUR/USD currency pair is currently moving up and down in a narrow range slightly below 1.0600. However, economists at ING have warned that a weak Nonfarm Payrolls release could send the pair all the way back to where it started the week, near 1.0700.
According to ING, the recent repricing of the Fed curve following the SVB Financial-inspired move has seen the two-year EUR:USD swap differential narrow by 20bp in favor of the euro over the past two days. This is providing some support to EUR/USD.
Soft NFP Job Release Could Send EUR/USD Back to 1.0700
The Nonfarm Payrolls (NFP) report is a key economic indicator released by the US Department of Labor each month. It provides data on employment growth and is closely watched by traders and investors around the world.
A soft NFP job release, however, could lead to questions regarding whether the Fed needs to be as hawkish as Jerome Powell sounded earlier this week. This could send the EUR/USD pair all the way back to where it started the week, near 1.0700.
Key Takeaways
In summary, the EUR/USD is currently trading in a narrow range below 1.0600. However, a soft Nonfarm Payrolls release could send the pair back to where it started the week, near 1.0700.
Additionally, the recent repricing of the Fed curve following the SVB Financial-inspired move has seen the two-year EUR:USD swap differential narrow by 20bp in favor of the euro over the past two days. This is providing some support to the EUR/USD pair.
As always, traders and investors are advised to keep a close eye on economic data releases and other market-moving events to make informed trading decisions.
