EUR/USD survived the drop, US Payrolls on sight

FXStreet (Edinburgh) – The single currency is netting an even week vs. its American rival, with EUR/USD currently trading in levels just shy of the psychological handle at 1.1000 (Monday opened at 1.1012).

The dollar, once again

The greenback has managed to stage a solid performance during the first half of the week (almost recovering the 98.00 mark in terms of the US Dollar Index) propped up by rising concerns around the Greece-EU debt talks and expectations of a rates lift-off during this year following the speeches by Chairwoman J.Yellen and Vice President S.Fischer.

However, yesterday’s increasing albeit unilateral optimism from Greek officials has opened the door to a potential deal over the weekend, triggering at the same time an abrupt change in the mood amongst traders. The market bought the news of an imminent agreement despite the skepticism from EU officials. As a consequence, the risk appetite trends re-emerged in detriment of the dollar, allowing spot to rebound from lows near 1.0820. Today’s poor results from the US GDP Annualized during Q1 plus the Reuters/Michigan index in 6-month lows and the Chicago PMI missing estimates have collaborated with the USD-weakness, lifting the pair to the 1.1000 neighbourhood.

The upcoming week will be a very good test for the pair, as significant releases are due in both the US economy and Euroland, all preceding the key May’s Non-farm Payrolls in the US economy.

The single currency is netting an even week vs. its American rival, with EUR/USD currently trading in levels just shy of the psychological handle at 1.1000 (Monday opened at 1.1012)..

(Market News Provided by FXstreet)