EUR/USD: Despite Strong NFP, EUR/USD Set To Hit 1.20 In

0

The euro took a break from the rallies after the US jobs report. EUR/USD finally made a significant correction. What’s next?

Here is their view, courtesy of eFXnews:

Danske Bank FX Strategy Research notes that EUR/USD fell on today’s NFP announcement, which showed employment rose by 209,000 in July and June was revised up to 231,000.

“The combination of lower unemployment and better wage data sent EUR/USD slightly lower on the announcement, as it supports the Fed’s case for announcing quantitative tightening (shrinking the balance sheet) in September and raising rates again in December,”Danske adds.

The price a action shows the market’s eagerness to buy EUR/USD. In our view, we could see a push towards 1.20 over the coming one to two weeks, as momentum is very strong.

However, the move is likely to fade ahead of the Jackson Hole symposium on 24-26 August and the ECB meeting on 8 September, with the pressure building on the ECB to raise concerns about the strength of the EUR. The effective EUR is now back to September 2014 levels.

For lots more FX trades from major banks, sign up to eFXplus

By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

Comments are closed.