EUR/USD hovers near 1.1870 as USD rebounds, German data eyed
- EUR/USD holds mild losses on Monday after the previous week’s gains.
- US Dollar Index rebounds slightly near 92.20, still below the last week’s high.
- The Euro earlier gained on hawkish ECB members despite weaker data.
The EUR/USD pair has been tracking minor losses in the Asian session on the first trading of the fresh week. After testing the high above 1.1900 for the first time since August on Friday, the pair opened lower in today’s session.
At the time of writing, the EUR/USD is trading at 1.1871, down 0.08% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against the six majors, rebounds near 92.00, which pushes EUR/USD into a lower trajectory.
The US economy added 372K new jobs in August. Much below the market expectations of 750K rise. The Unemployment Rate fell to 5.2% in August from the previous 5.4%.
The shared currency gained on the broad-based USD selling following the disappointing NFP data on Friday.
Investors bet on the single currency in the anticipation that European Central Bank (ECB) might start talking about limiting the emergency bond-buying. ECB Vice President Luis de Guindos remained positive about the bloc’s economic recovery and paving the way for the eventual withdrawal of the stimulus package.
Meanwhile, The European Union’s (EU) Economic Commissioner Paolo Gentiloni warned that the ECB that tighter monetary policy would be a “ big mistake”.
Investors turn their attention to German Factory Orders, Construction Purchasing Managers Index (PMI), EU Construction PMI data to take trade insight.
EUR/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
