DXY: US dollar index pulls-back after disappointing NFP data
The economy added just 49,000 jobs below the estimated 50,000.
The unemployment rate dropped from 6.7% to 6.3%
The US dollar index (DXY) pared back some of its earlier gains after the US released the first nonfarm payroll numbers of Joe Biden’s presidency. It is trading at $91.20, which is slightly below this week’s high of $91.60.
US dollar index trend
US nonfarm payroll numbers
The American labour market made a modest recovery in January even as the country continued to battle the coronavirus pandemic.
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EUR/USD: Bearish trend to continue after weak EU GDP data
The EU economy contracted by 5.7% in the fourth quarter.
Focus shifts to the EU and US services PMIs set for tomorrow.
The EUR/USD price launched lower after Eurostat published the preliminary EU GDP data. The pair dropped to 1.2030, which is 2.5% below the year-to-date high of 1.2348.
EUR/USD price action
EU GDP contracted in Q4
The European economy contracted in the fourth quarter as the region continued to battle the new wave of the pandemic. In total, the region’s economy weakened by 0.7% in the quarter and by 5.1% on a year-on-year basis. The median estimate by economists was for the economy to contract by 1.0% and by 5.4%, respectively. In Italy and Portugal, the economies contracted by 6.6% and 5.4%, respectively.