EUR/USD Kickstarts the Week with Gains, Climbs Near 1.19

2 min read
06 Jul, 21
Written by Clover4X
Article Highlights:
  • EUR/USD looking to the third day of gains as the dollar depreciates broadly
  • Traders will be anticipating FOMC minutes to get more insights over Fed’s policy stance

EUR/USD Kickstarts the Week

The EUR/USD pair is trading higher this week as dollar bulls appear to be on the defensive side across the board. On Tuesday, the euro advanced 0.25% to a session high of 1.1880 against the greenback. However, the upside momentum subsided and the EUR/USD pair closed at 1.1862, still in the green by 0.06% on the day.

The move higher on Monday came as a continuation of Friday’s volatile session which added just 13 pips to the EUR/USD exchange rate. Friday’s action, however, saw price fluctuate more than 60 pips as the market digested the latest non-farm payrolls. The higher-than-expected jobs report on Friday brought the pair to a three-month low. That’s because traders rushed to the US dollar following the upbeat report. Before the end of the session, the exchange rate erased the losses and closed in positive territory at 1.1860.

Employment Data Boosts the Greenback

The extended response to Friday’s payrolls turned into a third straight day of gains for the EUR/USD pair today. Moreover, the US dollar has been losing value against a basket of currencies. These include the Japanese yen, the Canadian dollar, the Swiss franc, and the British pound.

Since the release of the jobs report, which showed the US labor market grew by 850,000 new jobs in June, the USD/JPY has lost roughly 0.80% to currently trade at 110.80. The USD/CAD has declined by more than 1% for the same period and is currently hovering around 1.2330. The USD/CHF, which rallied for most of June, fell nearly 0.80% Friday-to-date. And the GBP/USD is higher by 0.9%, since Friday when the jobs report was released and the US dollar started depreciating.

The EUR/USD pair, along with other major currency pairs, are likely to be affected by Wednesday’s FOMC minutes. The latter is expected to reveal insights about the Federal Reserve meeting in mid-June. During the meeting, Fed policymakers had announced they see two interest rate hikes by 2023. The minutes of the meeting will be closely monitored by currency traders. Thus heightened volatility could be expected at the time of the release.

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