The euro dropped nearly 0.5% during the European opening due to investors' expectations of easing monetary policy during Thursday's upcoming ECB meeting. Many traders are hoping for an increase in the Europe quantitative easing program to help with the Eurozone's poor economic growth. The bank is also expected to push interest rates lower, however, the bank disappointed investors in December, causing uncertainty in the market.
As a result, the EUR/USD has dropped over the last few weeks, with the USD trying to make a recovery. However, due to the poor jobs report at the end of last week, the recovery has halted and caused the EUR/USD to recover some losses.
The dollar initially made gains after the US labor report due to the increase in nonfarm payrolls. However, the markets then latched on to the falling hourly rate, which spelled bad news for the possible interest rate hike this year.