Breaking: EUR/USD crushed to below 1.0900, nothing in the way until 1.0725
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A stellar US Nonfarm Payrolls report has propelled the greenback to a fresh high and sent the euro into the abyss where it touches 1.0885 vs the US dollar.
"There is now really nothing in the way of support until the April 2020 low near 1.0725 and then the March 2020 low near 1.0635,'' analysts at Brown Brothers Harriman said in a note on Friday.
EUR/USD monthly chart
The US jobs data arrived as follows:
- US Change in Nonfarm Payrolls Feb: 678K (est 423K; prev 467K).
- US Unemployment Rate Feb: 3.8% (est 3.9%; prev 4.0%).
- US Average Hourly Earnings (YoY) Feb: 5.1% (est 5.8%; prev 5.7%).
- US Average Hourly Earnings (M0M) Feb: 0.0% (est 0.5%; prev 0.7%).
Other news that sparked the sell-off in the euro during the Asian session was down to a fire that broke out in a training building near the Zaporizhzhia nuclear power plant, the largest of its kind in Europe.
The fire was extinguished and while that has helped ease some of the initial panics that hit markets in Asia, investors remain extremely anxious about the conflict, and the eurozone is especially at risk. The stellar jobs data underpins the likelihood of a rate hike from the Federal Reserve and the divergence between the Fed and European Central Bank is weighing on EUR/USD.
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