On Tuesday, EUR/USD is trading with modest losses in the low-1.1300s. This movement may be a sign of a more structural shift with regards to market dynamics. The US Dollar has, on balance, been moving up slightly against other currencies. This adjustment affects already difficult trading conditions between the Euro and the Dollar.
The US dollar’s run has held strength on a multitude of fronts — recent economic data, market sentiment on Federal Reserve monetary policy decisions, and global economic concerns. Speculators are zealously making their bets in the alt-coin trenches. For one, they point to the limited losses in the EUR/USD currency pair, underscoring the persistence of currency value swings.
The UK jobs report, which came out this morning, is an excellent illustration of the conflict. The inconclusive results continue to rattle the British Pound. Considering these mixed results, one might expect the Pound to be doing poorly. Commonly referred to as “Cable,” it has been successfully riding the wave of volatility caused by the jobs report.
The UK jobs report released earlier this month painted a picture of record UK employment at 75.5% and wage growth accelerating to 8.1%. These mixed results have financial analysts split on what it all means for the short-term future of the British economy and the British pound. The performance of Cable in light of these results is not just a story of strength, but one of unpredictability in the marketplace.
As of Tuesday the US Dollar is still hotly trading. With its recent strong performance in international markets, this is having effects across the board on all currency pairs, including EUR/USD. As the market continues to shift, market watchers are keenly attuned to these trends. More specifically they are fixated on other jurisdictions’ recent economic data especially from the UK and US.
Traders are taking a risk-off stance at the moment. Their new trading range for EUR/USD is the low-1.1300s as they weigh the risks and rewards. Though modest losses define its act today, traders are keyed up to watch for any reversal move or additional volatility.