The major currency pair stabilised on Wednesday after surging earlier. The current EURUSD exchange rate stands at 1.0877.
The market is gathering strength ahead of Friday’s US employment market report. Investors are currently interpreting isolated signals, with the previous day’s surprising data from the April job openings report still fresh in their minds. The report revealed a significant drop, reaching its lowest level in three years.
Specifically, JOLTS statistics showed that job vacancies decreased by 296 thousand, totalling 8.059 million, the lowest value since February 2021.
Investors usually do not pay much attention to such a release, but it has gained attention because the market is concerned about the tone of Friday’s data on the labour market. Non-farm payrolls (NFP) are expected to have risen by 185 thousand in May compared to April’s 175 thousand.
A weak employment report is good news for the US Federal Reserve, providing more arguments for a rate cut.