The EUR/USD rallied higher today as the effects of the positive non-farm payrolls subsided during the North American session. The euro briefly declined against the US dollar due to the positive non-farm payrolls, but later rallied higher as the NFP effects faded.
The EUR/USD currency pair gained over 40 points at the height of its rally and was on an upward trend at the time of writing.
The currency pair had dropped to 1.0946 after the non-farm payrolls were released, but quickly recovered and rallied higher due to the greenback’s weakness. The US dollar was much weaker during today’s session as tracked by the US Dollar Index, which hit a new weekly low of 98.50, which is its lowest level since November 2016. The currency pair was currently on a bullish trend as the greenback’s weakness continued to persist.
The single currency had largely demonstrated weakness during the European session despite the positive data from the Eurozone. The Markit Germany Construction PMI and the Markit Germany Retail PMI came in at figures lower than and higher than the previous figures respectively. The construction PMI came in at 54.6, which was much lower than the previous 56.4, while the retail PMI was recorded at 56.2 as compared to the previous 52.5.
The results of the second round of the French presidential election scheduled for Sunday is quite likely to influence the currency pair’s future performance.
The EUR/USD pair was trading at 1.0996 as at 16:04 GMT having rallied from a low of 1.0946 earlier today. The EUR/JPY was trading at 123.86 having risen from a low of 122.87 during the European session.
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