EUR/USD reached a new high above 1.08 on Friday following the release of US Nonfarm Payrolls (NFP) data which fell short of expectations, sparking hopes for potential rate cuts by the Federal Reserve. The NFP figures showed a decrease in job additions and wages growth, leading to increased bets on a rate cut by the Fed.
Additionally, US economic data, including the ISM Services PMI, came in lower than anticipated, further supporting the possibility of rate cuts. Looking ahead, upcoming European Retail Sales and US Consumer Sentiment figures will provide insight into the economic outlook for both regions.
On the technical side, EUR/USD broke through a recent consolidation zone and reached a weekly high of 1.0813. The pair encountered resistance near the 200-day Exponential Moving Average (EMA) at 1.0800 before pulling back slightly. The hourly and daily charts show the recent bullish momentum in the pair.
Overall, the market sentiment is leaning towards a potential rate cut by the Fed, which has pushed EUR/USD to higher levels. Traders will be closely monitoring upcoming economic data releases to gauge the future direction of the currency pair.