EUR/USD showed mixed movement on a back of the US data
On Friday we received the long-awaited data on US labor market. It should be noted that the data were mixed. This caused the mixed movement of the pair EUR/USD.
Despite the increase in the number of new jobs above (215K v. 205K) and the wage growth (+ 0.3% vs. forecast of +0.2%), the unemployment rate increased from 4.9% to 5% in March.
First the pair EUR/USD demonstrated growth and was able to reach the high of 1.1437, but then dropped to a low of 13.31. These data don’t exclude the probability of the rate hike this year. It seems that the market has accepted the fact that the rates increase will happen twice this year.
Today Eurozone will present data on PPI and unemployment rate. The US data are not important today.
We expect reduction of the pair EUR/USD to the 1.1350 area on the back of a downward correction of the pair EUR/GBP.
How to trade
We would buy PUT options if the price falls below 1.1370.
Target price: 1.1370
Close price: 1.1392
Expiry time: 20:00 GMT