EUR/USD: Market participants may get used to levels around 1.04/1.05/1.06 – Commerzbank

admin October 5, 2023

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The Commerzbank AG logo sits illuminated outside a bank branch as the German lender's headquarters stand beyond in Frankfurt, Germany, on Thursday, Oct. 20, 2016. Unlike Deutsche Bank, which announced plans in June to reduce its branches to 535 from 723 next year, Commerzbank says its branch network is key to its strategy to add two million new clients by 2020, double its previous target. Photographer: Krisztian Bocsi/Bloomberg

EUR/USD surpassed the 1.05 level as the Dollar rally took a breather on Wednesday. Economists at Commerzbank analyze the pair’s outlook.

Today’s session to be dominated by everyone waiting for NFP report

The longer EUR/USD trades at levels around 1.04/1.05/1.06 the less fundamental support is required to justify these levels.

As the official labor market due for publication on Friday traditionally has considerable effect on the USD exchange rates, today’s session will likely be dominated by everyone waiting for Friday’s report.

Ahead of the publication, today’s data should therefore not have the same effect as US data had in previous days. In case of considerable surprises, we might nonetheless see reactions in the USD exchange rates though.