Euro up following Friday's payrolls

The euro is extending its rally versus the US dollar after a better-than-expected jobs report from the US on Friday.

The EUR/USD pair is trading at $1.3722, up 0.1% as traders appear to no longer be fearful of tapering from the US Federal Reserve. As pointed out by Stan Shamu, the strong jobs data failed to push the US dollar higher.

German industrial production has slipped, as did its trade surplus, and the Sentix investor confidence report, which gauges the economic outlook for the next six months, dropped to 8 from 9.3 in November.

James Bullard of the Fed, who holds a centrist outlook when it comes to monetary policy, is due to make an announcement at 6.05pm today (London time). Traders will be looking for clues as to what the Fed will do at its next meeting on 18 December.

Eurozone finance ministers are meeting tomorrow, where one of the topics for discussion will be Ireland exiting the bailout scheme. If all goes well we could see the euro head towards the €1.38 level.

Spot FX EUR/USD chart

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