EURUSD Update: US Non-farm payrolls unexpectedly fall by 20K. Spread of debt crisis to Spain and Portugal adds pressure on Euro.

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EURUSD Update: US Non-farm payrolls unexpectedly fall by 20K. Spread of debt crisis to Spain and Portugal adds pressure on Euro.

The Euro versus the US Dollar slipped to a 9 month low, as the greenback continues to strengthen across the board. The major traded to a low of 1.3648 ahead of the US non- farm payrolls. With US employment data showing mixed results, with non-farm payrolls at -20K versus +5’000 expected and unemployment rate at 9.7% versus 10.1%, and oversold conditions building up on technical indicators, we may see a corrective retracement in EURUSD. With the price of the EURUSD failing to hold below 1.3650, we may now see the pair retracing to 1.3950 areas. The situation in Euro area still provides a bleak fundamental outlook for the European single currency. The recent reports that the debt crisis in Greece has spread to Portugal and Spain should keep pressure on the Euro in the medium term.

Therefore we will look for a small retracement in EURUSD in the next few days, before resuming its downtrend. The next target on the downside the downside is at 1.3450.



Emman Xuereb
Trading Desk
RTFX Ltd
Risk Disclaimer