Will NFPs Result In A Widening Of This Week's Range?

EUR/USD sits 10 pips or so lower ahead of the final European session of the week, last dealing at $1.1823, with the USD seeing a modest uptick in Asia-Pac hours, alongside U.S. Tsy yields.

• The rate has stuck to a very narrow 81-pip range in the week to date, with today's NFP release set to headline the broader docket on Friday. Will the reading be enough to widen the observed weekly range? In terms of the European docket, German industrial production headlines on Friday.
• A reminder that Thursday saw the rate observe a 29-pip range, with a heavily concentrated round of FX options expiries likely limiting broader price action ahead of the 10AM NY cut. When it comes to today, there is nothing in the way of notable FX options expiries to be concerned with at the 10AM NY cut.
• Technically, the 50-day EMA represents a key short-term resistance. A clear break is required to signal scope for a more significant bullish reversal. On the downside, the bear trigger is at the July 21 low ($1.1752). Our technical analyst flags that gains still appear corrective, in line with a bearish trend direction.