The euro / dollar pair is correcting after Friday's growth
Summary: trading on Friday ended with growth in the euro. The price recovered after the release of weak data on new jobs in December last year in the United States. This week, the calendar on economic indicators is meager. The dynamics of the yield on 10-year bonds remains dominant for all risky assets. On Monday, the euro is expected to have a downward correction to 1.1315 (LB) with a subsequent recovery to 1.1365 by the opening of the American session on Tuesday.
By the end of the week, major currencies closed lower, except for the British. Australian dollar down 1.24%, New Zealand dollar down 1.07%, Swiss franc down 0.72%, Japanese yen down 0.55%, euro down 0.68%, Canadian dollar down 0.60% , Japanese yen - 0.55%, euro - 0.20%, Canadian dollar - 0.02%.
On Friday, January 7, the euro rose in price against the dollar by 0.58%, to 1.1361. The employment report disappointed investors with a low figure. In December 2020, the US economy created 199 thousand jobs against the forecast of 400 thousand jobs. If we take into account other parameters of the report, then it came out positive.
The unemployment rate fell to 3.9%, while average hourly wages (inflation through wages) rose 0.6% MoM and rose 4.7% from a year earlier. The participation rate improved to 61.9%. The indicator for October was revised upward to 648 thousand from 546 thousand, in November - up to 249 thousand from 210 thousand. The general revision amounted to +141 thousand.
Following the release of the data, the EUR / USD pair rose to 1.1365. The dollar index was down to 95.70.
Scheduled statistics (GMT +2):
At 11:30 the eurozone will publish an index of investor confidence for January from Sentix January, at 12:00 - the unemployment rate for November.
Major currencies are trading in the red, with the exception of the Australian. The market is recovering after Friday's Non-Farm Payrolls report. The report fell short of market expectations, although overall the report was excellent.
The dollar on Monday wins back Friday's losses from early morning. The euro / dollar pair fell to 1.1326. The pullback was 50% of the upward movement from 1.1292 to 1.1386.
The price remains in the price range from November 30, 2021. The borders narrowed to 1.1270 - 1.1385. Given the uncertainty with the expectation of the US FRS rate hike in March, as well as the rapid spread of Omicron, the sideways dynamics will continue for several more days.
On Monday, the euro is expected to have a downward correction to 1.1315 (LB) with a subsequent recovery to 1.1365 by the opening of the American session on Tuesday.
This week, the calendar on economic indicators is meager. The dynamics of the yield on 10-year bonds remains dominant for all risky assets. On Tuesday, hearings will be held in the Senate Banking Committee on the approval of Jerome Powell for a second term as chairman of the US Federal Reserve. Also on Tuesday, ECB President K. Lagarde speaks.
Summary: trading on Friday ended with growth in the euro. The price recovered after the release of weak data on new jobs in December last year in the United States. This week, the calendar on economic indicators is meager. The dynamics of the yield on 10-year bonds remains dominant for all risky assets. On Monday, the euro is expected to have a downward correction to 1.1315 (LB) with a subsequent recovery to 1.1365 by the opening of the American session on Tuesday.