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EUR/USD CATCHES A BULLISH BREAK, BUT STILL TRAPPED BELOW 1.11

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  • EUR/USD rose on Wednesday as markets sell off Greenback.
  • Markets have tilted into a risk-on position as bets of a Fed rate cut rise.
  • US jobs data rules the market roost as investors look to NFP.

EUR/USD caught a bid on Wednesday, rebounding from a recent selloff and catching technical support from 1.1050. Despite the topside tilt to price action in the midweek, the pair remains hobbled below the 1.1100 handle. US jobs data will remain the key focus for markets this week in the run-up to Friday’s US Nonfarm Payrolls (NFP).

European Retail Sales remain the sole key data print from the EU side of the Pacific this week. Slated for early Thursday, pan-EU Retail Sales figures in July are expected to recover to a scant 0.1% YoY compared to the previous -0.3% contraction.

US JOLTS Job Openings in July missed the mark, adding 7.673 million available jobs compared to the forecast 8.1 million, compared to the previous month’s revised 7.91 million. With the Federal Reserve (Fed) broadly expected to begin cutting interest rates on September 18, markets are tilting further into bets of a 50 bps cut to kick off the next rate cutting cycle. Rate markets are still pricing in 100 bps in total cuts by the end of 2024, but there’s still a 57% chance of the Fed’s September rate call being a slimmer 25 bps, according to CME’s FedWatch Tool.




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