EUR/USD: US jobs data and political developments in EU could make the 1.0600 target easier

The single European currency is under pressure for a second day in a row as strong US jobs data on Friday and the latest developments in the Eurozone following the euroelection results have brought the US dollar back into the spotlight.

The US jobs data was a pleasant surprise for the US economy and acted as a trigger for the US dollar to gain over 100 basis points on Friday afternoon and from 1,09 level to approach the 1,08.

Τhe exchange rate after a prolonged period of being locked in a limited range shows increased volatility and the likelihood that the US dollar will benefit from the latest developments is increased.

European citizens have sent messages of challenge to current European politics, culminating in France where President Macron’s rule has been hotly contested and the country is headed for new elections at the end of June.

The first reaction with the opening of the market showed clear signs of questioning the European currency as a result of which it opened with some gap and now the markets await with interest the political developments.

In any case I do not expect dramatic developments and although the European currency is under question I believe that there will be no collapse phenomena.

Τoday’s agenda is relatively indifferent and the only thing that stands out is the indicator for investors confidence in the eurozone while on the other side of the Atlantic the agenda is non-existent.

After the latest developments the possibility of the European currency challenging the level of 1,10 in the near future has been limited.

Correspondingly the possibility of the 1,06 level being tested again despite looking quite far last week has now gained some ground.

There is no change in my thinking, I remain on hold waiting for levels near 1,06 to assess the possibility of buying the European currency.