The Euro (EUR) strengthened for the second consecutive day on Friday, trading higher against the US Dollar (USD) following the release of a disappointing US Nonfarm Payrolls (NFP) report on Thursday. The US economy added 57,000 net jobs in June, which was just above half of the 110,000 jobs expected by the market. Additionally, May’s NFP reading was revised downward to 129,000 from the previously estimated 172,000. These weaker-than-expected employment figures have dampened market expectations for immediate Federal Reserve interest rate hikes and contributed to the US Dollar's decline against major peers [1].
Eurozone data further supported the Euro, with June’s final HCOB Services Purchasing Managers’ Index (PMI) revised up to 49.4 from the previously estimated 48.9. This revision pushed the Composite PMI up to 50 from the preliminary estimate of 49.5. The improvement was driven by stronger-than-expected services activity in Germany and Spain, although Italian and French services figures were revised lower [1].
Technically, the EUR/USD pair trades at 1.1455, maintaining a constructive near-term outlook, but faces significant resistance below the 1.1475-1.1500 area. Momentum indicators such as the Relative Strength Index (RSI) in the low 60s and a modestly positive MACD line support the bullish tone. However, bulls are likely to be tested at the 1.1500 level, which coincides with key technical resistance points. If this level is breached, the next target is around the June 15 and 16 highs near 1.1620. On the downside, support is seen at Wednesday's low of 1.1360 and further at 1.1333, with a break exposing the late-May 2025 low at 1.1210 [1].
In terms of daily performance, the Euro was the strongest against the Canadian Dollar, gaining 0.24%, and also posted gains against the US Dollar (+0.14%), Japanese Yen (+0.15%), and Swiss Franc (+0.05%) [1].
CONCLUSION
The Euro's advance against the US Dollar was driven by weaker US jobs data and improved Eurozone services PMI figures. While the EUR/USD pair maintains a bullish near-term outlook, it faces strong resistance near 1.1500. Market sentiment is moderately positive for the Euro, but further gains depend on overcoming key technical barriers.