FX.co ★ Euro can remain under pressure

The US dollar rose strongly against the European currency and the British pound on Friday, after the release of a good report on the labor market, as well as new information related to tax reform in the US.

According to the Ministry of Labor, the number of jobs outside of US agriculture in July this year increased by 209,000 compared with the previous month, while economists forecast job growth is 180,000. Such a report will allow many investors and traders to look at the US dollar, so as it is likely that the Fed will go this year at least another increase in interest rates.

This is reflected in interest rate futures. According to the CME Group, investors estimate the likelihood of another increase in FRS interest rates this year at 52% versus 47%.

As noted above, the US dollar also received support after the director of the National Council for the Economy at the White House Gary Kon announced the real prospects of tax reform. According to Cohn, the White House is proposing the right reforms, in particular, encouraging American companies to repatriate foreign incomes. This can increase the attractiveness of the US dollar, at least through exchange operations.

A slight upward correction, which was noticeable today at the Asian session, remains, even despite the rather weak data on Germany's industrial production in the second quarter of this year.

According to the report of the German Ministry of Economics, industrial production in June fell by 1.1% compared with the previous month, while economists expected the growth of the indicator by 0.1%.

If we look at the indicator by sector, then the biggest drop was observed in the manufacturing industry, where the decline was 1.4%. Production in the construction sector fell by 1.0%.

Compared to the previous quarter, industrial production grew by 1.8%.

As for the technical picture of the EUR/USD pair, you can look at the new sales after trying to update the large resistance level of 1.1815, which was formed on Friday in the afternoon. Breakthroughs of today's minimums will also lead to increased pressure on the euro, which will allow large players to return to the minimums of last Friday. In this scenario, the area of support of 1.1710 will be a good support.

Today it also became known that the Central Bank of New Zealand revised the report on inflation expectations for the worse, which exerted a slight pressure for the pair NZD/USD at the beginning of trading. According to the data, inflationary expectations in New Zealand for the 3rd quarter were revised to 2.09% against the forecast of economists, who expected that this figure would be 2.17%.