The euro today fell amid conflicting trade headlines as investors continued to wonder whether the US and China would seal a phase one deal any time soon. However, the EUR/USD currency pair rallied higher in the early American session after the latest US jobs data released by the ADP missed expectations by a wide margin.
The EUR/USD currency pair today fell to a low of 1.1066 in the mid-European session before rallying to a high of 1.1109 after the release of the weak US jobs data.
The currency pair fell earlier today following yesterday’s comments by President Donald Trump that a deal between the US and China could come after the 2020 US elections. Investors are worried that Trump might prolong the trade war into next year, which could harm most businesses. The release of the upbeat Markit Germany Services PMI for November, which came in at 51.7 versus the expected 51.3, triggered a brief rally by the pair. The upbeat Markit eurozone services PMI for November, which came in at 51.9 versus consensus estimates of 51.5, also boosted the pair. However, the weak Markit France Services PMI for November limited the pair’s gains.
The currency pair later fell to its daily lows but rallied higher following the release of the US ADP employment change report for November, which reported 67,000 new jobs missing expectations of at least 140,000 new jobs. The pair had a muted reaction to Trump’s comments at the NATO meeting today.
The currency pair’s future performance is likely to be affected by trade headlines and the US ISM non-manufacturing PMI set for release at 15:00 GMT.
The EUR/USD currency pair was trading at 1.1105 as at 14:06 GMT having rallied from a low of 1.1066. The EUR/JPY currency pair was trading at 120.62 having risen from a low of 120.09.
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