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6 Sep 2013
EUR/USD recovers ground on grim Payrolls
FXstreet.com (Edinburgh) -The shared currency is rapidly recovering ground on Friday, lifting the EUR/USD to the area of 1.3150/60 after softer US employment data.
EUR/USD bounces off 1.3100
The US economy has created 169K jobs during August, missing expectations at 180K and down from July’s 104K (revised from 162K). In line with market consensus, the US jobless rate came in at 7.3% during the same period. The euro is thus paring initial loses and trading back into the positive territory. “The ECB still has the possibility to react and a 25bp refi rate cut is likely if EONIA rates increases too fast. Thus, in our view, the case for a medium to long-term trend lower in EUR/USD driven by divergent monetary policy remains intact”, observed Sverre Holbek, Analyst at Danske Bank.
EUR/USD levels to watch
As of writing the pair is up 0.41% at 1.3173 and a break above 1.3223 (high Sep.5) would expose 1.3237 (high Sep.2). On the downside, the initial support lines up at 1.3089 (low Jul.19) followed by 1.3051 (low Jul.16).
EUR/USD bounces off 1.3100
The US economy has created 169K jobs during August, missing expectations at 180K and down from July’s 104K (revised from 162K). In line with market consensus, the US jobless rate came in at 7.3% during the same period. The euro is thus paring initial loses and trading back into the positive territory. “The ECB still has the possibility to react and a 25bp refi rate cut is likely if EONIA rates increases too fast. Thus, in our view, the case for a medium to long-term trend lower in EUR/USD driven by divergent monetary policy remains intact”, observed Sverre Holbek, Analyst at Danske Bank.
EUR/USD levels to watch
As of writing the pair is up 0.41% at 1.3173 and a break above 1.3223 (high Sep.5) would expose 1.3237 (high Sep.2). On the downside, the initial support lines up at 1.3089 (low Jul.19) followed by 1.3051 (low Jul.16).