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EURUSD Price: US Dollar Rallies Against Euro for the Third Day

Simon Mugo trader
Updated 6 Feb 2023

The EURUSD currency pair was trading down 36 pips (0.34%) as the US dollar rallied against the euro for the third consecutive day following Friday’s upbeat US non-farm payroll (NFP) data. The dollar remained stronger than most of its peers for most of today.

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YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The upbeat US jobs data will likely give the Fed confidence to keep interest rates high despite the looming fear of a recession this year. The jobs data shocked many, given that many of the largest US firms have been firing employees, yet the smaller companies have been hiring.

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

On the European front, January's German factory order data was released. The print came in at 3.2%, beating analysts' expectations of a 2.1% expansion. However, despite Europe’s largest economy recording an increase in factory orders, this was not enough to lift the single currency. 

Furthermore, the upbeat eurozone Sentix investor confidence report came in at -8 versus consensus estimates of -12.9, but this was not enough to reverse the euro’s downtrend. The pair traded sideways during the Asian session but fell during the European and early American sessions. 

The currency pair’s decline was accelerated by the disappointing Eurozone retail sales data, which was recorded at -2.7% versus the expected figure of -2.4%. The steeper decline in retail sales indicated that consumers were cautious with their expenditure amid fears of a likely recession in the Eurozone this year. 

The lack of news releases from the US docket did not deter the dollar from holding on to the gains it made on Friday and inching higher against most of its peers as tracked by the US Dollar Index.  

Overall, it was a quiet day in the Forex markets, and traders will look for more action tomorrow. 

*This is not investment advice. 

The EURUSD price chart.

The EURUSD currency pair was trading down 36.3 (0.34%) as the US dollar rallied against the euro. 


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading