/EUR/USD drops to 1.2020 and stabilizes under pre-NFP levels | by Matías Salord | FXStreet

EUR/USD drops to 1.2020 and stabilizes under pre-NFP levels | by Matías Salord | FXStreet

EUR/USD below pre-NFP levels, consolidates daily losses but up for the week.  Greenback negative tone eased amid rising yields.  The EUR/USD pair stabilized around 1.2035, below the level it had before the NFP report. The greenback fell across the board after jobs data but then rebounded and trimmed losses.  EUR/USD spiked at 1.2082 and then dropped to 1.2018 hitting a fresh daily low. It remained close to the lows following the release of the ISM Non-Manufacturing PMI that came in below expectations.  The jobs report showed that the US economy added 148K jobs in December against expectations of 190K. Average earnings rose 0.3% (as expected) while the unemployment rate remained at 4.1%, the lowest in 17 years. The ISM Non-Manufacturing PMI came in at 55.9, gains consensus of a modest rise from 57.4 of last month.  Also affecting the EUR/USD was the euro that weakened in the market during the last hours. The euro printed fresh lows versus the Swiss franc and also the pound.   A positive start for the euro despite Friday’s slide  The euro is about to end with gains the first week of 2018, posting the highest weekly close since December 2014. The positive signal from the weekly close is partially offset by the fact that it moved far from the highs after Friday’s reversal. On a wider perspective, the upside tone for EUR/USD is intact. “We remain of the view that the EUR can extend its better tone in 2018, but expect the pace of the gains to slow. This week we revised up our 6 month EUR/USD forecast to 1.22 (from 1.20) and see scope for a move to 1.24 by the end of the year”, said analysts from Rabobank.