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USD Down Ahead of NFP
The US dollar has been lower again today, extending the week’s declines as the market continues to digest the Fed’s surprise rate cut earlier in the week. The US dollar has been heavily sold over the week and is now testing the 96.04 support. Later today, the market receives the latest labor market report from the US. And, in the wake of the surprise rate cut this week, any further weakness in data will weigh heavily on USD.
Traders Brace for ECB Next Week
EURUSD has been higher again today, benefiting from the drop in USD. EURUSD has now broken above the 1.1239 resistance level to trade up to its highest level since early 2019. The rally in EUR has seen price making its largest weekly gain since summer 2018 and is now testing the bearish trend line from 2017 highs.
Next week, the ECB is expected to announce further easing in line with moves from the RBA, BOC and the Fed this week, which should cap the rally in EUR.
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