- EUR/USD struggles to hold onto the gains in the Asian session.
- US dollar recovers from the previous session's low amid strong NFP data.
- The Euro gains limited on ECB's dovish outlook, PMI data eyed.
The appreciative move in the US dollar keeps EUR/USD grounded on Monday morning Asian’s session. The pair recovered from the low 1.1806 made on Friday post-Nonfarm Payroll (NFP) data.
At the time of writing, EUR/USD is trading at 1.1852, down 0.11% for the day.
The US 10 year benchmark yields trade at 1.43% with losses of 0.10%. The US Dollar Index (DXY) follows the treasury yields and retreats from the monthly high above 90.55 to trade at 92.35.
Investors ditched the greenback on mixed US economic data. The NFP data came at 850K, beating the market expectations at 700K. The data ebbed the expectations of sooner than expected rate hike expectations from the Fed.
The Unemployment rate came slighly higher at 5.9%. The US Factory Orders jumped 1.7% in May, slightly above the market expectations.
The Minutes from the June meeting are due to be released on Wednesday that could draw some light on the insight of the policymaker’s view on the economic and inflation outlook. The US dollar gains on the expectations of hawisk Fed's view.
On the other hand, the shared currency gains were limited as the ECB President Christine Lagarde said, the economic recovery remained fragile despite upbeat economic readings. The rising inflation is expected to stabilize in the medium term below our target.
Meanwhile, the focus will be on the outcome of the special meeting of ECB to be held this week to discuss the definition of new price stability, as a part of the institution’s strategy view. The board signaled that the current central bank’s inflation target below, but close to 2% should be changed.
As for now, investors await the German Markit Purchase Managers Index (PMI) and Eurozone PMI data