- Euro recovery extends to 0.9960 and erases losses of the previous four days.
- Data on unemployment and wage growth in the US send the dollar lower.
- EURUSD: A decline to 0.9500 remains likely — Rabobank.
The Euro has risen during the US Friday afternoon, with the pair hitting session highs of 0.9960 so far. The common currency has erased the losses of the previous four days with a shocking 2.2% rally on the day, which has turned positive on the weekly chart.
Data on unemployment and wage growth in the US have crushed the dollar
The dollar accelerated its downward trend today, after the publication of the employment report for October. Nonfarm payroll data has beaten expectations with a reading of 261,000, above the consensus of 200,000, and with September’s record revised higher to 315,000 from 264,000.
Elsewhere, the unemployment rate rose to 3.7%, from 3.5% in September, and wage inflation slowed to 4.7% from 5%. These embryonic signs of a possible easing in labor market conditions have revived the theory of slow rate hikes in December, sending the US dollar down across the board.
EUR/USD: A decline to 0.95 remains likely — Rabobank
Rabobank FX analysts remain bearish on the pair and maintain their view of a further decline towards 0.9500: “In our opinion, the euro is not fully valued due to the headwinds the economy is facing of the eurozone (…) We continue to see the risk of a fall in the EURUSD towards 0.95 in the coming weeks and we see the possibility that the euro remains weaker for longer against the dollar”.
Technical levels to watch
Source: Fx Street
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