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EUR/USD holds near 1.1550 after dollar rebounds on jobs data
After a sharp selloff following July Nonfarm Payrolls, the US Dollar Index is up about 0.1% near 99.7 as traders look to upcoming US CPI.
EUR/USD traded around 1.1550 in early European trading Monday, edging lower as the US dollar rebounded after a sharp drop on Friday, when investors reassessed Federal Reserve rate expectations following soft July Nonfarm Payrolls data, FXStreet reports. The US Dollar Index, which tracks the greenback versus six major currencies, was up 0.12% to about 99.72 at press time. The jobs report showed employers cut 23K jobs against expectations for 80K new jobs, which helped push the market to dial back September rate hike odds, with CME FedWatch putting the probability at 46%, down from 67% a week earlier. Traders are now positioned for the next catalyst, the US Consumer Price Index data for July, scheduled for Wednesday. FXStreet notes that EUR/USD has maintained a bullish near term bias because it is still above the 20-day exponential moving average near 1.1484, and the relative strength index is stabilizing above 60. On technical levels, initial support is cited near the August 3 low at 1.1500, then the 20-day EMA at 1.1484, with exposure to 1.1353 if that level breaks. To the upside, the pair could test the June 15 high at 1.1622 if it records a decisive break above Friday’s high at 1.1581.
Latest closeEUR/USD 1.152 ▼0.3%|Dollar index 99.98 ▲0.3%