Euro falls to fresh lows on negative US employment data
The euro is experiencing a heavy sell off today, following a strong move in the European currency yesterday caused by a rates cut by the European Central Bank.
“Whilst yesterday’s move was triggered by the actions of the ECB, today’s catalyst was the worst than expected release of the US Non Farm Payrolls for June,” said Paul Reilly, head of foreign exchange broker Clear Currency.
He added that market expectations were forecasting an additional 97,000 jobs but the release disappointed with 80,000 new jobs, spurring investor demand for safety.
“As a result, global equities are experiencing heavy selling with the Dow Jones Industrial Average off 1.20%. EUR/USD is trading precariously close to another benchmark level,” he added.
In the afternoon, the currency pair touched a low of 1.2307.
Meanwhile, EUR/GBP is down to 0.7935, “heading back to lows not seen since late 2008,” Clear Currency said.
Sterling has also fallen against the dollar with cable now trading at 1.55.