The euro-dollar exchange rate fell below the key 1.20 level last week before reclaiming that level before the weekend following the release of some less-than-stellar U.S. jobs data. This was reported by poundsterlinglive.com on its website.
Robust reaction of the single currency euro
The exchange rate’s ability to reclaim 1.20 has impressed some market participants, who say the single currency’s robust response is keeping a broader appreciation trend alive.
Greater confidence in euro only above 1.21
However, for Roberto Mialich, FX strategist at UniCredit Bank in Milan, greater confidence in the euro’s comeback will come if there is a move above 1.21 in the short term:
“In the past, a EUR-USD break through a key level like 1.20 would have triggered a sharp sell-off. This time, the pair seemed to find a bottom at around 1.1950, and weaker-than-expected labor market data in the U.S. was enough to lift it back near 1.2050,” Mialich said in a research note published Monday.
“However, this is not enough to remove the downward pressure,” he warns.
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