The EUR/USD currency pair exhibited a bearish trend today given the uncertain political environment in Europe and a weaker US dollar. The currency pair changed insignificantly after the US Department of Labor reported that the number of jobless claims had massively declined and beat expectations.
The currency pair started the day’s session on a bearish trend before recovering briefly and later resuming its decline during the early North American session.
The currency pair has been on a downward spiral since last week given the uncertain political environment in Europe largely due to the upcoming elections in France and Germany. There is also significant uncertainty in the USA based on Donald Trump‘s unorthodox policies that have significantly affected the greenback’s performance.
The US dollar strengthened against the euro after the report by the US Department of Labor indicated that unemployment insurance weekly claims had declined by about 12,000 to a figure of 234,000 for the week ended February 3. Investors refrained from purchasing the currency pair despite the positive labor report from the US in light of recent rhetoric from Trump regarding the strength of the US dollar.
The currency pair is likely to be affected by future political events in the United States and Europe, while the bearish trend is likely to persist over the short-term.
The EUR/USD was trading at 1.0656 as at 16:54 GMT having tested highs of 1.0709 before the start of the North American session. The EUR/GBP was trading at 0.8515 having hit a daily high of 0.8546 and then traded at lows of 0.8493 before recovering.
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