Euro gains against greenback

The Euro posts solid gains against the US Dollar, though it faces stirring resistance at the 100-day moving average (DMA), which caps the pair's advance toward 1.0900. Weaker-than-expected US jobs market data and upbear services PMIs in the Eurozone (EU) sponsored a leg-up for the shared currency. The EUR/USD trades at 1.0858, up 0.21%.

The Greenback is treading water after the US Bureau of Labor Statistics (BLS) revealed that Initial Jobless Claims for the week ending March 30 increased from 212K to 221K, exceeding forecasts of 214K. At the same time, the US Balance of Trade blocked a $-68.9 billion deficit, wider than expected and the previous month's reading, a headwind for the US Dollar.

US Treasury yields edged lower, as depicted by the 10-year benchmark note rate dipping to 4.31%, before resuming to 4.353%. The US Dollar Index (DXY), which tracks the currency’s value against a basket of peers, is down 0.15% at 104.06.

Federal Reserve officials crossed the wires led by Philadelphia Fed Patrick Harker, saying that inflation is too high. Recently, Richmond Fed President Thomas Barkin said the Fed could be patient regarding cutting interest rates. He’s optimistic about achieving a “soft landing,” even though he complained about recent inflation data. In the meantime, Chicago’s Fed President, Austan Goolsbee, stated that the biggest danger to inflation is housing price pressures. He added that by keeping rates restrictive for too long, the labor market could begin to deteriorate.

Across the pond, Euro services PMIs improved across the block in March. EU Services PMI rose to 51.5, up from 50.2 in February. The German reading expanded for the first tie in six months. Given the backdrop, traders are still projecting the first ECB rate cut in June. On the contrary, market players expect the first Fed cut for the July meeting ahead of the Jackson Hole symposium.