Why Is EUR/USD Gaining Strength Above 1.0750? | Key Factors Driving the Euro Rally

The elon musk coin launch dateEUR/USD currency pair has maintained its bullish trajectory, hovering around 1.0765 during early Asian trading hours on Monday. This marks the fourth consecutive day of gains for the euro against the US dollar, with market participants closely monitoring upcoming Eurozone economic indicators.Several factors contribute to the current market dynamics:1. **US Economic Softness**: Recent employment data revealed weaker-than-expected job growth in April, with Nonfarm Payrolls increasing by only 175K compared to March's revised 315K. The unemployment rate edged up to 3.9%, while wage growth slowed to 3.9% annually.2. **Shifting Fed Expectations**: Market participants now see nearly 90% probability of Federal Reserve rate cuts by September, according to CME FedWatch tools. This represents a significant increase from 55% just last week, putting downward pressure on the US dollar.3. **Eurozone Economic Indicators**: Traders await the release of Germany and Eurozone PMI data, along with Producer Price Index figures. Preliminary estimates suggest the services PMI will hold steady at 52.9, with the composite PMI unchanged at 51.4.4. **Diverging Central Bank Policies**: While the ECB appears poised for potential June rate cuts following stable April inflation, this policy divergence from the Fed could create headwinds for the euro in coming months.Technical indicators show the pair trading above its 20-day SMA at 1.0705, though it remains below the 50-day (1.0796) and 100-day (1.0840) moving averages. Key resistance levels to watch include the daily pivot point R1 at 1.0808, while support appears at S1 (1.0719) and S2 (1.0677).The currency pair's movement in coming sessions will likely depend on:- Eurozone PMI and PPI data releases- Continued interpretation of US labor market trends- Evolving expectations for central bank policy moves- Technical factors around key support and resistance levelsMarket participants should remain alert to potential volatility as these fundamental and technical factors interact in the currency markets

Why Is EUR/USD Gaining Strength Above 1.0750? | Key Factors Driving the Euro Rally

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