It settled around the level of 1.1872 at the time of writing the analysis, which is a very boring performance for forex investors. The reason for this performance is the preference of investors and markets until the announcement of numbers US jobs on Friday to clarify the performance of the most important elements moving the policy of the US Federal Reserve, the labor market, along with inflation levels. The improvement in numbers will be positive for the dollar, as expectations of the imminent date of the US central bank's policy tightening will increase.
The US non-farm payrolls report for July will be released on Friday at 13:30 and will be a key determinant of the timeline during which the Federal Reserve announces and implements a massive $120 billion monthly QE cut.
After Federal Reserve Governor Christopher Waller, one of seven permanent voters of the 12 FOMC voters that sets the bank's policy, told CNBC News on Monday that "the next two jobs reports are just as strong as the last one." We can taper off by September.” Friday's report is the most important for the Fed's tight schedule and the trajectory of the dollar due to higher economists' expectations heading into the release, which consensus indicates that 895,000 jobs were added or recovered from the coronavirus last month.
This will be the second month in a row that the economy has produced nearly a million jobs, reflecting back-to-back huge job reports not seen since the US reopened from the initial economic shutdown in the second quarter of 2020.
On the other hand, with the global widespread abandonment of the restrictions of the epidemic, the outbreak of the Corona delta variable raises the ire of investors and markets not to continue taking risks. As the variable is rapidly spreading and threatens to return to the closure, which is a new threat to the path of global economic recovery, and it was not good for the euro. The delta corona variant was first discovered in India, and quickly became dominant wherever it landed, including the United States. Viruses are constantly changing, and most changes are not alarming. But the concern is that unchecked spread could feed mutations and produce a variant that is more contagious, cause more serious disease or evade the protection offered by vaccines.
That's why experts say universal access to vaccines is critical. They noted the importance of full vaccination; Getting only one dose of the two-dose vaccine does not prevent delta.
According to the technical analysis of the pair: On the daily chart below, it seems clear that the performance is stabilizing in case of anticipation of the EUR/USD currency pair, within the range of a weak ascending channel that was formed recently, which still needs to breach the 1.2000 psychological resistance to be in control of the stronger bulls, thus increasing long positions to test the tops higher. So far, there is a threat to that channel if the currency pair returns to stability below the 1.1775 support, which is the closest to it currently. I prefer buying the euro-dollar pair from this support and from below it. The euro will be affected today by the announcement of the purchasing managers' index for the services sector for the economies of the euro-zone. The announcement of the first reading of the US currency market, the ADP index to measure the change in the number of US jobs in the non-agricultural sector, and the ISM purchasing managers index for US services.
