The EUR/USD pair fell during the session on Friday, as one would expect since the nonfarm payroll number was much better than anticipated. The Americans added 195,000 jobs in the month of June, and as a result the US dollar got a bit of a bid overall. Bonds sold off in America, and interest rates rose. This market fell as a result, simply because of the interest rate differential. The European Central Bank stated earlier in the week that the ECB would keep rates exceptionally low for a long amount of time, and as a result it appears that the interest rate differential should continue to favor the Americans over the longer term. However, the 1.28 level has been supportive in the past, so we’re looking for a little bit of a bounce from down here in order to sell the rallies.
Written by FX Empire