EUR/USD slips to 1.1715 on risk-off

• EUR/USD drops 0.24%, tracking losses in the US stock futures. 
• The S&P 500 futures decline on continued Us fiscal impasse. 
• The Eurozone CPI and US Nonfarm payrolls will be eyed by traders.  

Risk-averse moves in the US stock futures are again boding well for the US dollar and pushing EUR/USD lower. 

The futures tied to the S&P 500 are currently down 0.22%, and EUR/USD is trading near 1.1715, representing a 0.24% decline on the day. 

The dour mood could be attributed to the continued fiscal impasse in the US. On Thursday, the House of Representatives approved a $2.2 trillion Democratic plan to provide more economic relief from the coronavirus pandemic. The Republicans, however, are likely to doom the House Democrats' plan in the Senate.

Additional bearish pressure for equities seems to stem from President Trump's decision to quarantine himself along with his wife after a close aide tested positive for the coronavirus.

The pair will likely suffer a bigger drop in Europe if the Eurozone Consumer Price Index for September prints below estimates. 

With weak data, markets may begin pricing higher odds of the European Central Bank adopting a more relaxed approach to controlling inflation by the year-end. President Lagarde dropped hints of average inflation targeting earlier this week, causing a drop in EUR/USD. 

Later in the day, the focus would shift to the US Nonfarm Payrolls report, which is expected to show the economy added 850,000 jobs in September after adding 1.371 million in August.

Technical levels