EUR/USD Price Forecast – Euro Gives Up Early Gains

The European Union continues to see major issues when it comes to energy and growth, and it is being reflected in the EUR/USD pair. Furthermore, you also have the situation where the Federal Reserve is likely to tighten monetary policy light years ahead of the ECB, so that makes the US dollar much more attractive. While we did try to go higher earlier in the session, the reality is that we cannot hang on to the gains, and it seems all but certain that the Euro will go looking towards 1.15 handle. That being said, it should also keep an eye on tomorrow as it will be crucial.

EUR/USD Video 08.10.21

The Non-Farm Payroll number comes out on Friday, and that of course could have the Federal Reserve painted into a corner and forced to tighten monetary policy, if the number of course is strong enough. If it ends up being extraordinarily weak, there is a little likelihood that this market will turn around and go much higher, but I do not necessarily think that it would change the trend. It should just essentially delay the tapering coming out of the United States so I think that the move to the upside will probably be somewhat limited, perhaps to the 1.17 an area or so.

If we turn around and fall through the 1.15 handle, very likely that the market could go looking towards the 1.1250 level. We are most decidedly in a negative run right now, and I just do not see that changing without some type of major shock coming out of the jobs report, and perhaps even some Federal Reserve officials.

For a look at all of today’s economic events, check out our economic calendar.