Euro bounces off $1.37

The euro is slightly up against the US dollar, as it has managed to pull back some of its losses from last week.

The euro is trading at $1.3716, up 0.1% on the day, after pulling back a few pips from the losses incurred last week. Mario Draghi’s mention of quantitative easing and the reasonably strong non-farm payrolls report, pushed the euro towards the $1.37 level.

There was no major reaction to the slight rise in Germany industrial production, and the Sentix investor confidence report was in line with expectations.

Very little has changed since my update on Friday, and the focus of this week will be on the Federal Reserve minutes on Wednesday at 7pm (London time). The news that the US added 192,000 new jobs was broadly welcomed by traders, but the figure was still below the 200,000 estimate.

As Chris Weston stated, Federal Reserve members, James Bullard and Dennis Lockhart hinted at an increase in rates in first and second half of 2015 respectively. If the minutes on Wednesday are hawkish, we could see the euro move towards the 200-day moving average of $1.3602.

Spot FX EUR/USD chart

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