EUR/USD holds for first in 6-session

The European Union's currency tilted lower during the Asian session to see its rebound to its second lowest session since June 26, 2017 against the US dollar on the eve of economic developments and data expected on Friday by Eurozone economies and the US economy The world's largest economy.

At 5:15 am GMT, the EUR/USD rose 0.05% to 1.1199 compared to the opening at 1.1193, after reaching its highest during the session at 1.1201, while reaching a low of 1.1185.

The markets are looking ahead to the German economy's largest economy in the "zone" to show the factory demand index, which may rise 0.5% from 1.6% in December, while the seasonally adjusted annualized reading for the index itself may shrink to 3.1% off 7.0% in the previous annual reading on December.

Before the second largest economy in the eurozone, France, announcing its Industrial Production Index reading, which may reflect a slowdown in growth to 0.1% vs. 0.8% in December, coinciding with the release of the trade balance reading, which may indicate a widening deficit to 4.9 billion EUR off EUR 4.7 billion , and leading to the release of the industrial production index of Italy, the third largest economy of the region, which may reflect a rise of 0.2% against a decline of 0.8%.

This comes a few hours after ECB monetary policy makers kept interest rates at current zero levels, stabilizing the marginal lending rate at 0.25% while maintaining a negative interest rate of -0.40% and announcing a new round of long-term refinancing operations " TLTROs " that will start by September to March 2021 with a two-year maturity of zero interest.

In the same vein, we also followed on Thursday the European Central Bank's expectations for a rate hike from September to December as it lowered its forecast for the growth rate of the eurozone economies this year to 1.1% from its previous forecast of 1.7% The growing global risk that could cause the economies of the region to continue to linger longer than previously expected.

On the other hand, the markets are currently looking for the US economy to reveal labor market data that could reflect a drop in unemployment rate to 3.9% versus 4.0% on previous reading for January, amid expectations that the reading of the Change in Jobs Index for non-farm  job creation sectors slowed to 180,000 jobs as against 304,000 jobs added in January.

This is in line with the release of the average hourly earnings reading, which may indicate a faster growth rate of 0.3% vs. 0.1% in January, and concurrently with the disclosure of housing market data with the reading of the Construction Starts Index and Construction Permit, Reflecting the decline in building permits and the rise in homes begun during January.

The Building Permits Index is also expected to show a decline of 2.9% to 1,287 thousand, compared to a rise of 0.3% at around 1,326 thousand in December. The index of construction starts may rise 9.9% to 1,184,000 compared to 11.2 At around 1,078,000 homes in December.