The US dollar moved back to the $1.12 level after series of labor data releases for the month of April or previous week, with rate-hike bets still related to September’s meeting.
The Bureau of Labor Statistics released is US non-farm payrolls data for the month of April on Friday, showing an increase by 223,000 new employees, while the unemployment rate dropped to 5.4%, the lowest level since 2008.
Such recovery has been needed for the US dollar after a month full of disappointment from poor first quarter and low March employment change.
Although we could see a short-term selloff of the greenback, while euro enjoyed popularity after first signs of quantitative easing efficiency (mostly related to speeches of ECB’s representatives, not rela data), from a long-term perspective we see even delayed rate-hike in the United States to be the strongest factor on the US dollar strengthening vs euro.
From the technical point of view, we can expect the dollar to climb to $1.0719, albeit previous TP may be set on $1.0966. For EUR/USD bulls, the $1.1367 level seems to be the proper place to put their TP on.
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