US dollar unwound, EUR/USD in a new range

By FXStreet FXStreet (Guatemala) – EUR/USD has been on the march again while the US dollar remains in the hands of the bears, sold-off to new heights on continued unraveling while markets fear the worst.

EUR/USD jumped up to reach the 1.12 handle as investors panic before the key nonfarm payrolls event tomorrow. But with 2016 starting out on a very bad foot, analysts are starting to look beyond the jobs data and looking at the whole economy for signs that the US might not be in as good a position as portrayed by the Fed, with Yellen beating the drum slightly off-key.

US dollar tanking on worsening outlook

Manufacturing is a small part of the US economy, but that in itself is worrisome, but nevertheless, the US could be described as being in an industrial recession. Elsewhere, the picture is not quite as bad, but GDP Q4 at 0.7% estimates while jobs for the quarter printed 200k more than expected by the time the data was revised for October and November is quite dubious and raises alarms.

The jobs data is a lagging indicator, and while data worsens elsewhere, perhaps the jobs numbers are the next to start to suffer and would leave …read more

Source:: FX Street