The EURUSD pair had a day of consolidation on Friday which was also the day when the NFP was released, which did bring about some volatility in the markets but at the end of the day, it turned out that the pair ended up pretty much within the tight range for the day and did not show any signs of moving in any direction soon.
EURUSD Continues to Stay Strong
The NFP report from the US showed that the employment increased by more than what was expected and this finally reversed the trend of weak employment data from the US. This was probably the only relief for the dollar bulls as the average hourly earnings did not rise as much as was expected. This led to some choppy price action in the pair on the release of the data and this continued till the end of the day on Friday. The data at best, could be considered as mixed as the rise in employment was compensated by the fall in earnings and this continued to present a mixed picture of the economy.
The euro continues to trade in a strong manner across the board due to the clear indication from the ECB that they are likely to consider tapering pretty soon. This positive outlook in the eurozone is in complete contrast to the confusion prevailing in the US where we are seeing a stalemate in the passage of the new healthcare reform bill which continues to drag on for weeks. This is a clear signal that the Trump administration would find it difficult to push through any major amendment and this policy paralysis is likely to affect the US economy in the long term.
Looking ahead to the rest of the day, we have to wait and see how the market reacts to the mixed numbers from Friday and also to the fact of how the political scenario in the US is playing out. Apart from this, there is not much economic news out there today and so expect some consolidation with the range top at 1.1440 looming ahead.
This article was originally posted on FX Empire