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Euro Falls Against US Dollar on Weak Sentiment and Upbeat NFP

September 4, 2020 at 16:50 by Simon Mugo

Counting 50-euro bills

The euro today fell against the much stronger US dollar extending the bearish trend that began earlier this week as the greenback strengthened against its peers. The EUR/USD currency pair fell to its daily lows during the American session following the release of the US non-farm payrolls report for August, which was mixed.

The EUR/USD currency pair today fell from a high of 1.1865 to a low of 1.1781 after the release of the US NFP report before bouncing off the lows by the time of writing.

The currency pair’s initial decline was driven by negative investor sentiment during the Asian market. The release of the disappointing German factory orders report for July contributed to the pair’s decline. According to the Federal Statistical Office, German factory orders grew 2.8% versus the expected 5% expansion contributing to the pair’s losses. The greenback’s rally also contributed to the single currency’s decline as tracked by the US Dollar Index, which hit a high of 93.24 today.

The fiber fell to its daily lows after the release of the upbeat US non-farm payrolls report for August. According to the Bureau of Labor Statistics, the US added 1.37 million jobs instead of the expected 1.4 million jobs, slightly missing expectations. All other prints were positive, including the unemployment rate, the average weekly earnings, and the labour force participation rate.

The currency pair’s performance over the upcoming weekend is likely to be affected by geopolitical events.

The EUR/USD currency pair was trading at 1.1831 as at 16:49 GMT, having recovered from a low of 1.1781. The EUR/JPY currency pair was trading at 125.68, having risen from a low of 125.30.

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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