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Euro Rallies Against US Dollar on Weak ADP Jobs Data, Later Declines

December 6, 2018 at 17:01 by Simon Mugo

A fan of 500-euro billsThe euro today rallied higher against the US dollar following the release of the latest US employment change data in the early American session. The euro was also bid higher by the sell-off in global equity markets due to fears relating to the US-China trade truce and the recent arrest of the Huawei CEO in Canada.

The EUR/USD currency pair today rallied from a low of 1.1321 in the early European session to a high of 1.1413 after the US monthly jobs data.

The currency pair opened today’s session in a consolidative phase before heading lower in the late Asian session. The pair rallied higher in the early European session following the release of the Markit Germany construction PMI for November, which came in at 51.3 versus the previous figure of 49.8. The pair had a muted reaction to the release of the German factory orders for October by the Federal Statistical Office despite the print declining by a smaller margin than expected.

The release of the US ADP employment change data in the early American session, which came in at 179,000 jobs versus the expected 195,000 jobs triggered a parabolic rally by the pair. The rally was further boosted by the disappointing initial jobless claims data and the October trade balance data, both of which missed expectations.

The currency pair’s future performance is likely to be influenced by tomorrow’s eurozone GDP data and US non-farm payrolls report.

The EUR/USD currency pair was trading at 1.1369 as at 16:49 GMT having dropped from a high of 1.1413. The EUR/JPY currency pair was trading at 127.85 having declined from a high of 128.37.

If you have any questions, comments or opinions regarding the Euro, feel free to post them using the commentary form below.

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