Euro edges higher after jobs data

The euro is still in the red versus the US dollar, but better-than-expected employment data has given the currency a boost.

This morning’s report from Brussels showed that employment in the eurozone dropped by 0.1% in the last quarter. The euro traded higher on the back of this, as economists had expected a greater decline of 0.2%.

The eurogroup, which is a meeting of all the region’s finance ministers, has backed the next tranche of the Cypriot bailout. This will prevent the indebted nation from running out of money. Jeroen Dijsselbloem of the eurogroup has suggested another meeting should be held in November to discuss the Portuguese exit from the bailout programme.

At 2.55pm, the US will release the University of Michigan consumer sentiment report, and the market consensus is for a reading of 82.6. If the report comes in below this expectation we could see the traders buying EUR/USD.

Next week, the Federal Reserve will make its announcement regarding monetary policy. The jobless claims figure yesterday dropped to a seven-year low, but the data was not fully accurate, as not all the states were accounted for. If the Fed hints at plans to taper the stimulus package, the euro could come under pressure.

Spot FX EUR/USD chart

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