Euro edges higher
The euro is creeping higher this morning as the greenback gives up some of the gains that were accrued on the back of the non-farm payrolls on Friday. As I previously stated, the headline figure easily exceeded the estimates, and an interest rate rise from the US this year cannot be ruled out. EUR/USD is likely to encounter little volatility this week as Greece is off the radar for now, and there is little in the way of economic announcements from the eurozone to get traders excited.
The currency pair has been gaining ground since March but the strong US jobs report will curtail any future gains, and next week’s Federal Reserve meeting will be the highlight of the fortnight. A rate rise next week is unlikely, but the commentary will provide a clue as to a possible September hike.
The $1.12 level is acting as resistance and if it is cleared $1.14 will be the next barrier to a rising EUR/USD. The $1.11 mark has already been punctured overnight, and a move through it again will bring the support at $1.10 into play.