- US dollar weakens across the board after the official US jobs report.
- EUR/USD pair gains momentum after breaking above 1.0930.
- The pair is heading for its highest weekly close since May.
The pair EUR/USD gained momentum amid a weakening dollar following the release of US jobs data. After breaking above 1.0930, the Euro accelerated and rose to the 1.0960 zone, reaching the highest level in a week.
Dollar fall after NFP
US Non-Farm Payrolls (NFP) increased by 209,000 in June, below market expectations of 225,000. The May increase of 339,000 was revised down to 306,000. The unemployment rate dropped to 3.5%. The unemployment rate dropped to 3.6%. Despite the setback in job creation, the figures continue to show a strong labor market.
Markets continue to see a rate hike at the next FOMC meeting, but expectations for a second hike before the end of the year have softened. This appreciation has capped US yields and as a result the dollar is down 0.75%, having the worst day in a week. US stocks are mixed while commodity prices rise.
EUR/USD is holding above 1.0960, its highest since June 27, with bullish momentum intact. It maintains weekly gains, above the 20-week simple moving average. If the pair holds above 1.0960, attention would turn to the 1.1000 area and then the June high at 1.1012. Conversely, a drop below 1.0930 would weaken the near-term outlook for the Euro.
Next week
There will be no key Eurozone data released next week. The most relevant economic figures will come from the United States with the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday. Inflation numbers will be crucial ahead of the July 25-26 FOMC meeting.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
