ForexLive European FX news wrap: Euro stays buoyed, markets wait on US jobs report

Headlines:

• The euro train marches on for now
• The focus turns towards the US jobs report to wrap up the week
• Oil nudges up as Russia’s Novak says OPEC+ may reverse oil output hike if necessary
• There is no change to strong dollar policy – Bessent
• April tariffs will be a choice for countries if they want frictionless trade – Bessent
• Germany January industrial orders -7.0% vs -2.8% m/m expected
• France January trade balance -€6.5 billion vs -€3.9 billion prior
• Eurozone Q4 final GDP +0.2% vs +0.1% q/q second estimate
• UK February Halifax house prices -0.1% vs +0.3% m/m expected
• Trump sends letter to Iran, says would rather negotiate a nuclear deal
• Heads up: The clocks go forward in the US this weekend

Markets:

• EUR leads, AUD lags on the day
• European equities lower; S&P 500 futures up 0.1%
• US 10-year yields down 2.7 bps to 4.255%
• Gold up 0.4% to $2,922.09
• WTI crude up 1.2% to $67.17
• Bitcoin down 0.4% to $89,078

It’s all about the US jobs report as we look to the final stretch of the week.

The dollar is trading more mixed in general, with the euro continuing to scale higher and eyeing the next leg up ahead of the weekend. EUR/USD moved up from 1.0820 earlier to a high of 1.0870 before backing off slightly now to 1.0850.

The gains in the single currency is also keeping regional currencies buoyed with GBP/USD up 0.2% to 1.2910 and USD/CHF down 0.4% to near 0.8800 on the day.

While the dollar struggles there, it is making some headway against commodity currencies with USD/CAD up 0.2% to 1.4325 while AUD/USD is down 0.5% to just under 0.6300. On the latter, there are large option expiries at the figure level helping to anchor the pair at least until we get to US trading.

In other markets, stocks are being pressured lower and the nervous tension is starting to pick up now with less than an hour before the US jobs report. European indices are surrendering gains on the week, with only the DAX staying above water at this stage. Meanwhile, US futures are also moving down to hold marginal gains after a steadier mood earlier in the session.

The risk got ugly yesterday in US trading and I fear that even with a reprieve from the non-farm payrolls data, the bout of selling may return later on in the day. And if the data warrants a selloff straight off the bat, things could get even uglier ahead of the weekend.

Welp. Let’s see what the jobs report has to offer. It’s going to be one of the bigger ones to watch out for. So, even if you’re not keen on the volatility, you can always bring out the popcorn to watch the chaos unfold. 🍿

This article was written by Justin Low at www.forexlive.com.