EUR/USD extends losses with the US Dollar firmer ahead of the US ADP report.

Dollar bounces up from long-term lows.
A cautious Powell and strong US Job Openings have provided some support for the Greenback.
EUR/USD is under growing bearish momentum after rejection above 1.1800.

The EUR/USD pair is accelerating its reversal from multi-year lows at 1.1830 and trades near 1.175 ahead of Wednesday’s US session opening. An unexpected increase in the Eurozone unemployment in May and dovish comments from ECB speakers have increased bearish pressure on the Euro (EUR).

The US Dollar (USD), on the other hand, is a tad firmer, following strong US employment data and an unyielding Federal Reserve (Fed) Chairman Jerome Powell, who maintained his “wait-and-see” stance at the European Central Bank’s (ECB) Forum on Central Banking in Sintra.

On Tuesday, US JOLTS Job Openings showed a larger-than-expected increment in June, endorsing Powell’s cautious stance, and the ISM Manufacturing PMI improved beyond expectations, with the Production sub-index returning to expansion levels for the first time since February, and prices increasing. These figures have given a fresh boost to the US Dollar.

Eurozone data was also positive on Tuesday, as German manufacturing activity improved, and German unemployment increased less than forecasted. Additionally, the Eurozone Consumer Price Index (CPI) report confirmed that inflation remains steady near the ECB’s target. All in all, supportive data for the Euro.

Later on Wednesday. European Central Bank (ECB) President, Christine Lagarde, will will speak again at the Sintra Summit. In the US, the focus will be on the ADP Employment Change for June, which will frame Thursday’s Nonfarm Payrolls (NFP) release.