TheÂ euro today rallied against theÂ US dollar following theÂ release ofÂ disappointing US non-farm payrolls report forÂ March. Earlier Markit Economics PMI releases covering theÂ European docket had triggered theÂ euro’s initial uptrend following aÂ major decline during theÂ Asian session.
TheÂ EUR/USD currency pair gained over 60 points toÂ rally from aÂ low ofÂ 1.2215 toÂ aÂ high ofÂ 1.2280 atÂ theÂ time ofÂ writing.
TheÂ currency pair had rallied briefly earlier following theÂ release ofÂ theÂ Markit Germany Retail PMI, which came inÂ atÂ 51.5, slightly lower than theÂ previous 53.8. TheÂ Markit Eurozone Retail PMI also came inÂ atÂ 50.1 asÂ compared toÂ theÂ previous 52.3. Investor sentiment towards theÂ single currency was positive despite theÂ weak Eurozone data due toÂ theÂ trade war fears inÂ theÂ USA. TheÂ weak German industrial production data released byÂ theÂ Federal Statistical Office contributed toÂ theÂ pair’s earlier decline.
TheÂ release ofÂ theÂ US non-farm payrolls report byÂ theÂ Bureau ofÂ Labor Statistics was theÂ main trigger behind theÂ pair’s latest rally. TheÂ NFP report indicated that theÂ US economy added 103,000 new jobs inÂ March, which was much lower than theÂ expected 185,000 jobs. TheÂ US unemployment rate also exceeded expectations byÂ coming inÂ atÂ 4.1% asÂ compared toÂ theÂ consensus estimate ofÂ 4.0%. TheÂ average hourly earnings print was inÂ line with expectations.
Given theÂ upcoming weekend, theÂ currency pair’s future performance is likely toÂ be influenced byÂ theÂ ongoing US-China trade war escalation andÂ other political events.
TheÂ EUR/USD currency pair was trading atÂ 1.2272 asÂ atÂ 17:31 GMT having rallied from aÂ low ofÂ 1.2215. TheÂ EUR/JPY currency pair was trading atÂ 131.44 having risen from aÂ low ofÂ 131.10.
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