The dollar dropped against the euro today after the US non-farm payrolls report came in weaker than expected (113k from 185k), though unemployment rate dropped to 6.6% from 6.7% expected. Eur/usd spiked up to 1.3642 from 1.3580 before the release while dollar fell broadly across the board except with the yen. Usd/jpy fell to 101.45 but quickly rebounded to 102.50 before settling around 102.20.
On another front, the UK’s manufacturing production came in at 0.3% from 0.6% leading to a quick drop in sterling an equally quick rebound, once again showing the resilience of the currency.
Trade Idea EURGBP Daily chart
The pair is trading sideways and lower within a channel and a breakout is imminent. A break and close on either side should accelerate momentum.
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