EUR/USD set to slide below the 1.21 mark

EUR/USD fell to a fresh weekly low of 1.2156 as bears take over on tapering speculation. According to FXStreet’s Chief Analyst Valeria Bednarik, the world’s most popular currency pair is at risk of falling further.

US employment-related data largely surpassed the market’s estimates, fueling dollar’s demand

“The US Federal Reserve announced on Wednesday that it will begin winding down part of its multiple programs set to support the economy throughout the pandemic. ‘Portfolio sales will be gradual and orderly, and will aim to minimize the potential for any adverse impact on market functioning,’ the Fed said.”

“The ADP survey on private jobs creation posted a whopping 978K in May, largely surpassing the 650K expected. Initial Jobless Claims for the week ended May 28 printed at  385K, better than the 395K expected and the lowest reading since the pandemic started.”

“The US has yet to release the May ISM Services PMI, foreseen at 63 from 62.7 in the previous month. In this scenario, stocks are further down and the dollar up, as signs of economic growth put more pressure on the Fed to tighten its monetary policy.”

“The pair has room to extend its slide sub-1.2100 should the current sentiment persists.”