The EUR/USD currency pair declined significantly as the euro weakened against the US dollar despite lower-than-expected US non-farm payroll report. The positive German trade balance figures did little to boost the weak euro as the currency pair tested new lows for the month and was on track to close below its opening price this week.
The currency pair lost over 70 points at the height of its decline and has been on downward trend for the better part of the day.
There was increased selling pressure on the currency pair despite the positive German trade balance figures, which came in at â¬19.9 billion versus the expected â¬17.7 billion. The selling pressure on the currency pair started yesterday after the dovish comments from Mario Draghi, the President of the European Central Bank. The euro demonstrated weakness against the greenback throughout the week as the pair was trading in a narrow range, but traded lower today.
The currency pair was minimally affected by the release of the US non-farm payroll report, which was recorded at 89,000, a figure much lower than the expected 180,000. The March unemployment rate was recorded at 4.5% versus the expected 4.7% indicating a significant improvement.
The currency pair is likely to be affected by the German ZEW survey data due for release on Tuesday next week given that there are no major economic releases for both currencies on Monday.
The EUR/USD was trading at 1.0590 as at 19:16 GMT having opened the day’s session trading at 1.0643. The EUR/CAD was trading at 1.4206 having opened the day’s session trading at 1.4288.
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