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Apr 02 - 11:55 AM

EUR/USD - COMMENT-EUR/USD Has 1.16 Back In Mind After Brawny U.S. Jobs Report

By Randolph Donney  —  Apr 02 - 09:49 AM

EUR/USD weakened after robust U.S. jobs numbers.
NFPs, at +917k, beat forecasts by 270k, and the prior two months were revised up by 156k nAPN04CETQ.
This result will no doubt confirm assumptions that the U.S. pandemic recovery will be outstanding, and that dollar-supportive Treasury yields are likely to resume their rise, while EUR/USD falls toward key support by 1.1600.

Indeed, November and September lows and the weekly cloud top at 1.1592-1612 remain the main downside targets.

EUR/USD's recovery from Wednesday's 1.1704 year-to-date EBS low was rejected earlier today by the 10-day moving average, this week's high and the down trend-line from February's high near 1.1800 nL1N2LV0EG.
The late-week bounce has allowed daily RSIs to correct from mildly oversold readings.

More importantly, the stellar U.S. jobs report has ended a short-covering burst in Treasuries, sending 10-year yields up about 5bps from today's low, with bigger gains in the belly of the curve.

This as the EU grapples with pandemic crisis management nL8N2LT7DE, and belated attempts to catch up with the UK and the U.S. on the vaccination front nL1N2LU1ZZ.
And as the ECB has stepped up local debt purchases to keep yields, and the euro, from rebounding.

Still hefty spec longs also weigh.

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Source:
Refinitiv IFR Research/Market Commentary

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