BUZZ-COMMENT-EUR/USD bulls need more than JOLTS to be prodded into action

Credit: REUTERS/DADO RUVIC

Dec 5 (Reuters) - EUR/USD traded down Tuesday even after U.S. data indicated the U.S. jobs market may be weakening, as bulls appear to prefer waiting for the next round of employment reports before charging into action.

October JOLTS surprised with a large downside miss and September's result was revised downward. However, the quits component, a measure many investors use for employee confidence, only inched lower to 3.628m from 3.646m in September and is still hovering near pre-pandemic levels. This may indicate the downward trend in quits is stalling.

ISM non-manufacturing came in above estimates for November and the employment component lifted to 50.7 from 50.2 in October, which may fuel views the jobs market remains healthy.

The dollar's yield advantage over the euro increased after the data as German-U.S. 2-year spreads US2DE2=RR fell below trend line support, which helped EUR/USD threaten to move through structural support near 1.0800.

EUR/USD longs must now put their hopes on U.S. weekly and continuing claims as well as the November payrolls report.

They'll likely need the data to indicate a much weaker jobs market in order to be rewarded.

Unexpectedly upbeat results could keep Fed rates high for longer, potentially extending EUR/USD's recent decline.

For more click on FXBUZ

deus https://tmsnrt.rs/3R7D7KG

quits https://tmsnrt.rs/46Jki6j

(Christopher Romano is a Reuters market analyst. The views expressed are his own)

((christopher.romano@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.