The euro dropped today against the US dollar after the release of non-farm payrolls but remained firm against other majors, including the Great Britain pound and the Japanese yen. It is surprising to see such resilience considering yesterday’s policy announcement from the European Central Bank.
Initially, the euro tumbled after the ECB announced additional stimulus, but the currency bounced later and ended yesterday’s session with a big gain versus the dollar. Some market analysts explain such behavior by the common thinking “sell the rumor, buy the fact”, others argue that monetary accommodation may be actually positive for the euro. Whatever the reason, the currency recovered after the slump and now is looking for a direction.
Today’s data from Europe was a bit mixed but mostly positive. The German trade surplus unexpectedly widened from â¬15.0 billion in March to â¬17.7 billion in April on a seasonally adjusted basis. Seasonally adjusted industrial production demonstrated growth by 0.2 percent in April that was below the predicted increase of 0.4 percent, but it was still a better reading than the previous month’s drop by 0.6 percent.
EUR/USD dropped from 1.3659 to settle at 1.3643 today. EUR/JPY closed flat at 139.88 following the drop to 139.37. EUR/GBP closed at 0.8118, also close to the opening, rebounding from the decline to 0.8098.
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