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EUR/USD lacks follow-through

FXStreet (Córdoba) - EUR/USD rose modestly and printed a daily high of 1.2988 right after the release of below-expectations US nonfarm payrolls. However, the euro lacked momentum to climb further and didn’t have the chance to challenge the 1.3000 level.

The dollar fell across the board after data showed the US economy created fewer jobs than expected in August (142K vs 225K), posting the smallest job gain this year, but losses were limited.

At time of writing, EUR/USD is trading at 1.2965, up 0.15% on the day but on track to close its eighth consecutive week with losses.

EUR/USD recorded its biggest daily drop in over 2 years and hit a 14-month low Thursday, after the European Central Bank unexpectedly cut all 3 of its main interest rates and announced it will start purchasing non-governmental securities and asset-backed securities (ABS) next month.

Bad news for the dollar

“We didn't need a great number to keep the ball rolling in favor of the dollar, just a good one. But we didn't get it”, says Jamie Coleman, analyst at FXBeat. “That should sap the momentum from the recent rally and set off a period of consolidation/retracement”.

“If the dollar is able to maintain strength into the weekend despite the weak employment data, that is a very powerful sign”, the analyst added.

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