EUR/USD: Euro remains close to 1.1050 level with bets off, pending Friday’s crucial US jobs data

The single European currency for the fourth day in a row remains locked near  1,1050 level with limited range on either side.

The US currency is back in the spotlight after suffering significant losses 2 weeks earlier with the European currency climbing to 1,12 one of the highest levels in 13 months.

The contraction of the labor sector in the United States acted as one of the catalysts that weighed on the US currency and drove the euro to significantly higher prices.

So it stands to reason that the week’s figures with preliminary labor data today and tomorrow but culminating the non-farm payrolls and the US unemployment rate to be announced on Friday will be awaited with great interest as they are able to feed new big bets.

Yesterday did not provide any surprises with the index for the manufacturing sector in US showing a small increase but remained below estimates but this did not affect the exchange rate.

International stock markets are under significant pressure with the  barometer index  S&P  registering significant losses yesterday which so far has not strengthened the US dollar which traditionally functions as a safe haven currency.

This reinforces the view that all bets depends on the prospect of a rate cut by  Fed on September 18, and this week’s labor data could set the cut between 25 and 50 basis points.

The US currency looks to have room for further gains and looks capable of challenging the 1,10 level soon, but in any case I’d prefer to remain on hold ahead of  key US jobs data.

The exchange rate staying close to the 1,1050 level and today with significant extensions on either side of the level is a likely scenario.