EUR/USD pair higher following NFP data

Following the release of the US NFP, the EUR/USD pair gains significantly, rising 1.12% off the day’s low. Following a strong NFP result for the USD, broad market flows have turned decisively risk-on.

Investor confidence data for October will be released on Monday, and this is what euro traders will be anticipating. The US Non-Farm Payrolls (NFP) on Friday caused investors to flee the US Dollar and return to risk assets, and the EUR/USD rose 117 pip from Friday’s lowest bids of 1.0482 to touch the 1.0600 mark. This helped to close off the trading week.

As investors prepare for the Friday close, the EUR/USD is currently trading back marginally and testing the waters near 1.0580. Notably, US Nonfarm Payrolls surged by 336,000 in September, exceeding the 170,000 estimate.

After hitting a weekly low near 1.0448, the euro has now just about recovered for the trading week. Last month, the US added 336K jobs, easily surpassing the forecast of 170K and going above the prior reading of 176K (updated to 227K).

With the EU’s Sentix Investor Confidence reading for October, which most recently printed at -21.5, the economic calendar appears to be noticeably light for the first half of next week. The US Producer Price Index (PPI) data and the most recent Federal Reserve meeting minutes will be released on Wednesday.