EUR/USD gaps up as US Dollar gets shunned in the open


Share:
  • EUR/USD bulls in the market at the open.
  • EUR/USD jumps in a gap to start the week after NFP.

EUR/USD 1.0590 target in a 61.8% Fibonacci retracement for the day ahead. On the other hand, a continuation towards 1.0770s could just as easily play out.

EUR/USD has opened with a large gap in the open and is trading around 1.0680 after closing on Friday at 1.0639 after a mixed Nonfarm Payrolls report triggered a sell-off in the US Dollar. 

However, as analysts at ANZ Bank said in a note before the open, ´´after so much anticipation it was ironic that it got lost in the noise, but non-farm payrolls rose 311k in February, indicating very strong momentum in jobs growth continues.´´

Additionally, the analysts explained that ´´the January data was barely revised, and the 3-month average of jobs growth is now 355k vs 321k in the prior three months. The unemployment rate edged higher to 3.6% as the participation rate rose 0.1% to 62.5%. Average hourly earnings slowed to 0.2% MoM (4.6% YoY). That will be of some comfort to the Fed, but the weaker monthly rise owed much to strong gains in low-paying jobs: leisure and hospitality and retail, suggesting firms expect discretionary consumer spending to remain strong,´´ they said.

Nevertheless, a significant repricing across the curve and in the terminal rate weighed on the US Dollar due to weaker-than-expected wages. The Fed funds rate implied upper bound fell from 5.89% to 5.5% and the probability of a 50bp hike in March declined substantially.

EUR/USD technical analysis

The price is reaching a liquidity area that could see the bears move in with eyes on a 1.0590 target in a 61.8% Fibonacci retracement for the day ahead. On the other hand, a continuation towards 1.0770s could just as easily play out. 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD heads for biggest daily gain in a month ahead of Powell Premium

EUR/USD heads for biggest daily gain in a month ahead of Powell

EUR/USD reached a peak at 1.0579, marking the highest level in two days, before pulling back towards 1.0550. Despite the retreat, the Euro is having its best performance in a month. Market attention is now shifting towards the upcoming speech by Fed Chair Powell.
 

EUR/USD News

GBP/USD consolidates gains near 1.2200

GBP/USD consolidates gains near 1.2200

GBP/USD extended its rebound and rose to 1.2224. Later it pulled back under 1.2200, but is still headed toward the biggest daily gain in more than a month. A correction of the US Dollar boosted the pair.

GBP/USD News

Gold extends slump to the $1,850 region Premium

Gold extends slump to the $1,850 region

Gold price extended its decline on Thursday to $1,857.66 a troy ounce, its lowest since early March. The US Dollar lost ground against most major rivals but surged vs the bright metal as the market mood slightly improved. European and American indexes traded with a better tone, helped by encouraging United States macroeconomic data.

Gold News

Coinbase receives regulatory approval to launch derivative trading for non-US customers

Coinbase receives regulatory approval to launch derivative trading for non-US customers

Coinbase is emerging as the biggest entity to defy the enforcement actions pursued by the Securities and Exchange Commission (SEC) after successfully launching its International exchange in Bermuda in Q2 this year.

Read more

Germany’s economic health check shows further signs of weakness

Germany’s economic health check shows further signs of weakness

The debate over whether Germany is emerging as the 'sick man of Europe' again has picked up steam once again over the summer. In our view, the answer is a resounding "yes”.

Read more

Forex MAJORS

Cryptocurrencies

Signatures