Anna 
In the European session on Friday, the EUR/USD pair continued its upward trajectory for the second consecutive day, reaching levels near 1.0880. The impetus behind the ascent was provided by a mix of economic data emanating from the United States (US). Additionally, the US Dollar (USD) faced downward pressure due to subdued Treasury yields, influenced by reports from New York Community Bancorp signaling increased stress in its commercial real estate portfolio.
Earlier in the week, the Euro witnessed a decline triggered by softer German consumer inflation data, sparking speculation about a potential interest rate cut by the European Central Bank (ECB) in June. However, the European currency rebounded following the release of mixed Eurozone inflation data on Thursday.
The US Dollar Index (DXY), measuring USD performance against a basket of six major currencies, struggles to retrace recent losses and is currently trading around 103.00. At the time of writing, the 2-year and 10-year US Treasury yields hover around 4.23% and 3.88%, respectively.
The backdrop of economic indicators includes a rise in US Initial Jobless Claims to 224K for the week ending January 26, surpassing both the prior increase of 215K and the anticipated figure of 212K. On a positive note, the ISM Manufacturing PMI improved to 49.1 in January from the previous reading of 47.1, exceeding the expected figure of 47.0.
Investors are closely awaiting key labor data scheduled for release on Friday, encompassing US Average Hourly Earnings and Nonfarm Payrolls (NFP). These figures are expected to further influence the dynamics of the EUR/USD pair in the ongoing market environment.
