EUR/USD: Tentative signs of a downturn

EUR/USD has been unable to sustain gains following the upbeat US jobs figures as the pair looks directionless around 1.1230 on Friday while concern about America’s rising coronavirus cases is central amid the long US weekend, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“Concerns about coronavirus ravaging the US – with a record 55,000 cases on Thursday – seem to outweigh the surge of 4.8 million job gains in June’s Nonfarm Payrolls report. The safe-haven US dollar is moving back up, keeping a lid on EUR/USD.”

“Trump did come out to the press and touted the upbeat Nonfarm Payrolls figures for June. Around 4.8 million people went back to work, better than three million expected. However, these are mostly temporary jobs that were restored. The percentage of permanent position losses rose from 11.4% to 21.4%. And perhaps more importantly – the figures were taken on the week ending June 12 – just before the disease began lifting its ugly head.” 

“Dutch Prime Minister Mark Rutte expressed hope that a compromise will be reached. His country is one of the ‘Frugal Four’ opposing handing grants mutually funded by member states.” 

“Markit’s final Services Purchasing Managers’ Indexes for June will likely confirm the slow recovery – with milder contractions than beforehand. Spain’s services PMI surprised with 50.2 points, better than 45.9 projected and indicating a return to growth.”