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

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.