EUR/USD tried to stretch for a fourth straight day of gains, but markets are drawing into the middle ahead of Friday's key US Nonfarm Payrolls (NFP) print.
The Euro saw a sharp rejection from the 1.0850 level on Thursday, ending Fiber's three-day win streak. EUR/USD has had a stellar week, climbing 4.6% bottom-to-top from Monday's opening bids.
Forex Today: The US Nonfarm Payrolls are coming!
FX markets have sharply rebalanced after rate cut expectations took a tumble this week.
According to rate markets, the European Central Bank (ECB) is broadly expected to only cut interest rates one more time in 2025 following Thursday's 25 bps rate trim.
With the Euro facing a much tighter interest rate differential than previously expected, EUR/USD took a hard step higher this week.
Markets remain hungry for more rate cuts to ease financing and borrowing costs, but still-sticky inflation in the EU (and now the US following a recent uptick in key inflation metrics) has hobbled central banks' ability to enact rate adjustments.
Source: FXStreet
