ForexLive European FX news wrap: Nervy markets awaiting the US jobs report

Traders turn cautious ahead of key data

European stock markets were lower on Friday with traders turning cautious ahead of the release of key US jobs data. The FTSE 100 was down 0.3%, the DAX was down 0.4%, and the CAC 40 was down 0.5%.

US jobs data in focus

The main focus for investors today is the release of the US jobs report for January. The report is expected to show that the US economy added 185,000 jobs last month, up from 223,000 in December. The unemployment rate is expected to remain unchanged at 3.5%.

The jobs report is a key indicator of the health of the US economy. A strong jobs report could boost the US dollar and put pressure on other currencies, such as the euro and the pound. A weak jobs report could have the opposite effect.

Key levels to watch

In the meantime, investors will be watching key levels in the currency markets. The euro is currently trading at 1.0890 against the US dollar, while the pound is trading at 1.2420.

The euro has been under pressure in recent weeks as concerns about the European economy have grown. The pound has also been weaker in recent days as Brexit uncertainty continues to weigh on the currency.

Technical analysis

Technically, the euro is trading below its 200-day moving average, which is a bearish sign. The pound is also trading below its 200-day moving average.

If the euro breaks below 1.0850, it could fall to 1.0800 or even 1.0750. If the pound breaks below 1.2400, it could fall to 1.2350 or even 1.2300.

What to expect next

The release of the US jobs report is the main event for today's trading session. A strong jobs report could boost the US dollar and put pressure on other currencies, such as the euro and the pound. A weak jobs report could have the opposite effect.

Traders will also be watching key levels in the currency markets. The euro is currently trading at 1.0890 against the US dollar, while the pound is trading at 1.2420.

Technically, the euro is trading below its 200-day moving average, which is a bearish sign. The pound is also trading below its 200-day moving average.