The euro today rallied higher against the US dollar following the release of disappointing employment data from the USA in the early American session. The EUR/USD currency pair was trading sideways in the mid-European session following a brief decline during the Asian session largely driven by market sentiment.
The EUR/USD currency pair today dropped from an opening high of 1.1659 to a low of 1.1614 in the early European session before rallying higher and recouping most of its losses.
The currency pair’s initial decline was triggered by investor concerns regarding the situation in emerging markets and the ever-present US-China trade war jitters. The release of the German factory orders for July by the Federal Statistical Office also drove the pair lower as the print missed expectations. However, the pair stabilized later in the European session following Italian budget headlines that eased investor concerns about the country’s fiscal policies and stabilized the Italian and German bond yield spreads. The release of the positive Markit Germany construction PMI also boosted the pair.
The currency pair rallied higher following the release of the US ADP employment change report, which came in at 163,000 new jobs versus the expected 188,000 jobs. The positive initial jobless claims data released by the Department of Labor shortly after had a muted impact on the pair.
The currency pair’s short-term performance will be influenced by the US ISM non-manufacturing PMI, US factory orders, and durable goods orders due for release later today.
The EUR/USD currency pair was trading at 1.1643 as at 13:00 GMT having risen from a low of 1.1614. The EUR/JPY currency pair was trading at 129.47 having dropped from a high of 129.82.
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