EURUSD Drops Below 1.09 After US Payrolls
04 March 2022
Traders continued to buy the USD on Friday as risk-off flows usually benefit the safe-haven greenback.
During the US session, the EURUSD pair was down 1.5% to trade below the 1.09 level for the first time since May 2020.
The war conflict in Ukraine continues to dominate the headlines. However, investors also paid attention to today's US labor market data.
According to the NFP, the US economy created 678,000 jobs in February, well above the 400,000 expected. Additionally, the unemployment rate improved more than forecast and slipped from 4.0% to 3.8%. On the other hand, wage growth slowed notably, both yearly and monthly.
The following support near 1.087 could be tested soon, and if not held, the euro could decline to 1.075 as the euro will be heading toward the post-COVID lockdown lows. If the Ukraine conflict does not improve soon, we might see continuous USD buying.
On the other hand, the pair must rise back above 1.10 to stabilize from the short-term perspective. The next key resistance could be in the 1.11-1.1180 zone.