Is there hope for USD bulls?

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The single European currency is gaining ground against the US dollar in today’s deals as traders are eyeing an upcoming release of US labor market fundamentals. Expectations among investors for future interest rate hikes by the Fed are currently too pessimistic. Yet traders still hope that the performance of the US jobs market will be robust enough to open up more room for monetary policy tightening by the Federal Reserve in the future. So all eyes are now on US non-farm payrolls data scheduled for release today, which can influence price action of the euro-dollar pair.
Following the overnight slide, the euro-dollar pair edged higher, now trading around 1.1427 levels. The euro is moving in a subdued manner versus the greenback as investors are closely watching Friday’s statistics from the United States.
Economic experts say that the reports on the number of new jobs in the non-farming sector and the US unemployment rate may provide some clarity on the Fed’s stance in terms of an interest rate lift-off in June.
Analysts expect the indicator to print a more modest rise in April than the one in March, when the American economy generated as many as 215 thousand jobs. On Wednesday, the ADP report showed that the US non-farm private sector added 156 thousand jobs last month.
Another labor market gauge was published yesterday. Even though the figures failed to match the estimates, they did not disappoint the markets either.
According to the data provided by the US Labor Department, the number of initial jobless claims rose to 274 thousand in the past week. Analysts had estimated that initial claims for unemployment benefits would climb to a total of 260 thousand.
Experts note that the indicator holds at its lowest levels below the long-term average yet it still threatens the US labor market. Investors are growing concerned about the health of the US economy’s key sector. Currency strategists say that the euro-dollar pair could be poised to end this trading week in negative territory. However, it all depends on the US jobs figures due later in the day.

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