The EUR\/USD pair fell further as strong US jobs data increased demand for the Dollar, with the pair trading at 1.1652. Eurozone producer prices decreased, suggesting the European Central Bank’s easing cycle is likely finished. Market participants are favouring the Dollar before the US Nonfarm Payrolls report due to strong US jobs data and fewer-than-expected jobless claims.<\/p>\n
The US Dollar Index (DXY) rose 0.19% to 98.91, surpassing its 200-day SMA of 98.87 and signalling potential gains above 99.00. In the US, Treasury Secretary Scott Bessent urged interest rate cuts to boost growth. Eurozone data showed improving consumer confidence, but economic sentiment fell due to weaker service provider, retailer, and consumer indices.<\/p>\n
In Germany, factory orders for November exceeded expectations, rising 5.6%. The US saw a narrowed trade deficit to $29.4 billion, driven by reduced imports. Inflation expectations and unemployment trends were also tracked. The technical outlook for EUR\/USD weakened, with initial support at the 50-day SMA of 1.1640, and further potential support and resistance levels outlined.<\/p>\n
We saw this exact pattern around this time last year in 2025, where a strong US labor market created a significant policy gap between the Federal Reserve and the European Central Bank. This divergence is once again driving the dollar higher, putting sustained pressure on the EUR\/USD exchange rate. Traders should anticipate this trend continuing in the near term.<\/p>\n
The US economy continues to show remarkable strength, reinforcing the dollar’s position. The latest jobs report for December showed the economy added 216,000 jobs, handily beating forecasts and keeping the unemployment rate at a low 3.7%. This robust data makes it less likely the Federal Reserve will rush to cut interest rates in the coming weeks.<\/p>\n
Conversely, the situation in the Eurozone continues to mirror what we observed in 2025, with producer prices showing weakness. The latest year-over-year Producer Price Index showed a contraction of 6.8%, signaling persistent disinflationary pressure. This gives the European Central Bank very little reason to consider tightening policy, anchoring the Euro.<\/p>\n
For derivative traders, this environment suggests that buying put options on the EUR\/USD could be a prudent move to capitalize on potential further downside. This strategy offers a defined risk while providing exposure to the bearish trend. Implied volatility is likely to rise ahead of the upcoming US Nonfarm Payrolls release, making now a key time to position.<\/p>\n
We are once again seeing the EUR\/USD pair testing its 200-day Simple Moving Average, a critical technical level we saw tested last year. A decisive break below this support could trigger further selling, similar to the slide towards 1.1561 we witnessed in 2025. Traders should monitor this level closely for confirmation of the trend’s continuation.<\/p>\n
Given the expected increase in market movement around the upcoming US data releases, even traders with a neutral outlook should consider strategies that benefit from volatility. A long straddle, which involves buying both a call and a put option at the same strike price, could be effective. This allows for profiting from a significant price move in either direction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EUR\/USD weakens as strong US jobs data boosts Dollar; Eurozone data mixed, market eyes payrolls report.<\/p>\n","protected":false},"author":62,"featured_media":16965,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-38671","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=38671"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38671\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16965"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=38671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=38671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=38671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}