The EUR/USD continues its downward trajectory.
The primary currency pair experienced a decline on Tuesday, with the current EUR/USD exchange rate resting at 1.0760.
Devotees of the US dollar are closely tracking the US labor market statistics for November. The initial data released yesterday was less than stellar. ADP employment change figures rose by 103,000, falling short of the anticipated increase of 130,000. This figure had seen a gain of 113,000 the previous month.
These tepid employment market statistics suggest that the Federal Reserve's stringent measures are yielding results, at least in terms of cooling down the economy and alleviating inflationary pressure.
In this context, the reports scheduled for Friday assume critical importance. The unemployment rate (expected at 3.9%), nonfarm payrolls (anticipated between +175,000 to +180,000), and average earnings are all set to be disclosed. These factors collectively will delineate the trajectory of the USD in the medium term.
While there isn't a direct correlation between the ADP data and Friday's NFP, it provides a preliminary indication that is somewhat discouraging.