The EUR/USD currency pair remained under pressure below the 1.0400 mark in the second half of the day on Thursday as a cautious market stance supports the US Dollar (USD), limiting any recovery attempts. Despite a rise in US weekly Initial Jobless Claims to 219,000, the Greenback continues its rebound, keeping EUR/USD in the 1.0350 region.

The USD’s strength persists even as market sentiment improves, reflected by gains in Asian and European equities. Additionally, lower government bond yields indicate a better mood, despite ongoing uncertainty surrounding global trade tensions.

In the Eurozone, data remains lackluster. Germany’s December Factory Orders increased 6.9% month-over-month but posted a sharp 6.3% decline year-over-year. Meanwhile, Eurozone Retail Sales fell 0.2% in December, missing expectations of a 0.1% drop. Across the Atlantic, the US Challenger Job Cuts report showed layoffs rising to 49.79K in January from 38.79K previously.

Later in the session, the US will release Q4 Nonfarm Productivity and Unit Labor Cost data, along with the latest Initial Jobless Claims report, which could further influence USD movements.

Trade Idea:

Consider selling EUR/USD below 1.0350, targeting 1.0300, with a stop-loss at 1.0385. A strong USD and weak Eurozone data may keep downward pressure on the pair.