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During yesterday’s session the EUR/USD remained close to unchanged and was trading within a narrow range. At the end of the session the euro managed to add just 7 pips to close at 1.1087. Still the negative sentiment prevails. Support is seent at 1.1045 and resistance is located at 1.335.
Euro Ticks Higher, Recovers from Last Week's Drop
The euro modestly increased against the greenback later on Tuesday, taking advantage from a set of mixed US data seen earlier in the morning.
Shortly before the opening bell, unit labor costs hiked 2.0% during the second quarter, after a revised drop of 0.2% before, while non-farm productivity declined 0.5% during the same period, following a drop of 0.6% booked previously.
''The weakness in productivity is holding down potential GDP growth, even as the labor force component of potential growth has shown signs of improvement recently. The labor cost data look quite tame, although, based on the latest tax withholding data, we suspect the Q2 figures will ultimately be revised up,'' HFE Notes economist Jim O'Sullivan mentioned.
On Monday, the EUR/USD rose 0.24% to $1.1113, climbing from an intraday low of $1.1070 seen during the Asian market hours, while the US dollar index slipped 0.22% to 96.08 points.
The US mixes data released this morning pushed the euro slightly higher against the US dollar. The EUR/USD pair managed to escape from the two week low at 1.1043 to currently trade at 1.1113.
The euro recorded moderate growth during yesterday's session after trading in a narrow range on Monday. EUR/USD pushed higher with 28 pips to 1.1115. RSI is in positive trend and support the bulls. If the pair climb above the 50-day MA at 1.1140, next target is 1.1160.
EUR/USD: Euro Trims Gains on Dollar Comeback
The greenback suddenly jumped higher against its major peers during the US session and erased some daily losses, but the EUR/USD pair still traded stronger on the day.
At the time of writing, the pair was trading at $1.1170, up 0.49% on the day, a bit lower than the daily highs printed below $1.1190.
US JOLTS openings for July rose notably to 5.624 million from 5.500 million, beating analysts' estimate of an unchanged number. The figure confirmed a positive trend for the US labor market.
In the previous session, US unit labor costs for the second quarter rose from a downwardly revised -0.2% to 2.0%. Moreover, non-farm productivity marginally improved to -0.5% from -0.6% previously. As the market had anticipated a much better number here, the US dollar was notably sold-off.
In addition, US wholesale inventories ticked up a notch to 0.3%.
"Current expectations for a Fed rate hike in September are standing at a meager 26%. Our view is that any decision will come down to the final data points prior to Yellen's Jackson Hole speech. In this context for example, Friday's strong payroll report will lose some relevance in the wake of newer data. The evidence is mounting that outside of a few key areas such as housing and labor, US economics are decelerating," analysts at Swissquote Bank said on Wednesday.
Earlier on Wednesday, the only euro data came from France. Industrial production in France worsened in June to -0.8% month-on-month, while the yearly print crashed to -1.3%, down from 0.5% previously.German Economy Slows in Q2: GDP
Germany's economic output booked a worse performance over the second three months of the year on a quarterly basis, highlighting the headwinds blowing against the euro zone's economic powerhouse, fresh preliminary data from Destatis showed on Friday.
The German economy rose 0.4% over Q2 2016, posting significantly worse results compared with the first quarter when the economy added 0.7%.
Back then, it snatched the best reading since the last quarter of 2014.
Markets had penciled in a slowdown to a 0.4% hike during the second quarter.