EUR/USD remains firm below 1.1300 post-NFP

• EUR/USD keeps the strong footing near the 1.13 mark.
• US Non-farm Payrolls rose by 4,800K jobs in June.
• The unemployment rate ticked lower to 11.1% from 13.3%.

The buying interest around the single currency remains well and sound, with EUR/USD hovering around the 1.1280 region in the wake of the US labour market report for the month of June.

EUR/USD stays capped by 1.1300 so far

EUR/USD keeps the positive stance in the second half of the week after the US economy created 4,800K jobs during last month, surpassing expectations for a gain of 3,000K jobs and up from May’s 2,699K (revised from 2,509K).

Further data showed the jobless rate eased to 11.1% and the critical Average Hourly Earnings – a proxy for inflation via wages – contracted 1.2% MoM and expanded 5.0% over the last twelve months, both prints coming in short of expectations.

What to look for around EUR

EUR/USD remains well supported around the 1.1170 region so far. In the meantime, investors continue to gauge the gradual and relentless re-opening of the economy in Europe against the possibility of a second wave of contagion (as per new coronavirus outbreaks around the world). The constructive view in the euro, however, remains well sustained by the improvement of some fundamentals in the region, in turn propped up by persistent (and massive) monetary stimulus by central banks. On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.

EUR/USD levels to watch

At the moment, the pair is advancing 0.34% at 1.1288 and a breakout of 1.1348 (weekly high Jun.23) would target 1.1422 (monthly high Jun.10) en route to 1.1495 (2020 high Mar.9). On the other hand, immediate contention emerges at 1.1168 (monthly low Jun.19) seconded by 1.1147 (high Mar.27) and finally 1.1036 (200-day SMA).