EUR/USD (current price: 1.0559)
The U.S. Employment Report was mostly in line with expectations on Friday. Non-Farm Payrolls rose by 178,000, although the previous number was revised lower by 20,000. The Dollar lost ground following the releases but it mostly regained the losses later on against the relatively weak euro. The Euro is down slightly today in early trading after the Italian referendum on a constitutional reform. The victory of the “no” votes will likely mean that Prime Minister Renzi resigns, leading to uncertainty in the country.
Our assessment: EUR/USD is still slightly above the previous lows near 1.05 after the recent correction. A re-test of the long-term support at 1.0475 is still possible in the coming days.
