Euro Resumes Uptrend in Wake of Disappointing U.S. Jobs Data

The Euro made a new high for the week,driven by disappointing U.S.jobs data. The rally through the former top at 1.3262 resumed the uptrend whileforming a new swing bottom at 1.3119 in the process.

The Euro made a new high for the week,driven by disappointing U.S.jobs data. The rally through the former top at 1.3262 resumed the uptrend whileforming a new swing bottom at 1.3119 in the process.

This morning the U.S. government releaseddisappointing jobs data which solidified the thought that the economic recoverywas stalling. The report which said private employers added fewer jobs duringJuly than forecast, raised concerns amongst investors about the sustainabilityof the U.S.recovery.

The disappointing non-farm payrolls datawill most likely be used by Fed officials next week when they set monetarypolicy. The weaker jobs number will most likely mean the Fed will announcestimulus measures to help revive the economy which may include renewing itsquantitative easing program.

Improvements in the Euro Zone economy at atime when the U.S.economy is still struggling makes the Euro a more attractive investment. Upsidemomentum indicates the Euro has enough buying power behind it to reach the 50%level at 1.3510 over the near-term.