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Traders eye Brexit news, U.S. Non-Farm Payrolls

07 Feb 2020

The EUR/USD pair hit the lowest mark since October on Thursday ahead of the release of U.S. Non-Farm Payrolls. The pair trades below the 1.10 mark after a disappointing result for German industrial output in December at -3.5%. 

On Thursday the EUR/USD dropped to 1.0964 -- a new four-month low. 

Official data confirmed a decline in German Industrial Production hinting at a steadied pace for Germany’s recession. Information showed -3.5% month-on-month. 

Concerns about Brexit are weighing on the British pound and pushing the GBP/USD to be traded close to the 1.2950 region. With the U.S. Non-Farm Payrolls released later on, the USD remains strong. 

Sellers are targeting November 22nd, 2019, low near 1.2820, as they search for entry below 100-day SMA, now around 1.2900.

The Cable bounced off-late on Thursday, which currently trades at 1.2940. 

As the UK and the EU continue negotiation talks to try and reach a trade deal, British retailers saw a surge in sales – the highest in six years. This rise helped the pair pick up its pace and supported for a recovery. 

Traders now await the publication of January’s employment data from the measure the USD’s strength. Additionally, the latest Brexit news will also be an influential factor for the pair.