US dollar steady after strong nonfarm payroll data from the US
The euro declined slightly against the US dollar even after some strong economic data from Europe. According to the German statistics bureau, the country’s exports climbed by 14.9% in June while imports increased by 8.9%. In May, the country’s exports and imports had increased by 8.9% and 3.6%, respectively. As a result, the country’s trade surplus increased to €14.5 billion, which was double the surplus in May. Analysts were expecting the data to show that the trade surplus increased to €10.1 billion. Other data from Germany showed that industrial production increased by 8.9% in June.
The US dollar rose today as investors reacted to the rising tensions between the US and China. In a statement yesterday, Donald Trump asked all American companies to stop doing business with the Chinese technology giant. Also, Trump announced new tariffs on Canadian aluminium. The US dollar is also reacting to the US employment numbers.
According to the Bureau of Labour Statistics, the US economy added more than 1.7 million jobs in July, lower than the 4.8 million it created in the previous month. The unemployment rate fell to 10.2% from the previous 10.5% while the participation rate declined to 61.4%. Still, the biggest risk is that the main states in the country have started to roll back reopening plans to prevent the virus from spreading.
The Canadian dollar declined against the US dollar after the country’s statistics office released the July employment numbers. The country added more than 418K jobs in July after it added more than 488k in the previous month. The participation rate declined to 64.3% from 63.8% while the unemployment rate declined to 10.9% from the previous 12.3%. In recent months, the Canadian economy has made great progress, supported by rising crude oil prices, improved retail spending, and strengthening the manufacturing and services sectors.
The EUR/GBP pair was little changed today as traders reacted to strong German trade numbers and UK house price data. The pair is trading at 0.9038, which is along the 50-day and 100-day exponential moving averages and along the white ascending trend line. It is also along the 61.8% Fibonacci retracement level. The moving average of the oscillator is below the neutral line. Therefore, the pair is likely to continue rising as bulls aim for the next resistance at 0.9050.
The USD/CAD pair pared some of the initial gains after the impressive job numbers from Canada. The pair is trading at 1.3331, which is slightly below the day’s high of 1.3374. On the four-hour chart, the price is below the 50-day and 100-day exponential moving averages while the RSI has moved to the current level of 51. Therefore, the pair is likely to resume the downward trend as bears aim for the next support at 1.3236.
The EUR/USD pair declined after impressive employment numbers from the US. It is trading at 1.1818, which is lower than the day’s high of 1.1877. On the four-hour chart, the price is along the 50-day EMA while the Relative Vigor Index (RVI) has moved below the neutral line. The price is likely to continue falling as bears target the next support at 1.1700.