Euro May Bounce Back Above 1.1500 After USD Rally Stalls
The US Dollar Index surged to 100.109 after stronger-than-expected NFP data (172k) raised Fed rate hike odds, but a pullback between 100.10 and 100.50 is expected. EUR/USD could recover while holding above 1.1500.
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The dollar rallied after Friday's US non-farm payrolls print of 172k, which beat expectations and increased the likelihood of a Federal Reserve rate hike. The Dollar Index climbed to 100.109.
However, analysts anticipate a short-term dip in the index within the 100.10–100.50 range. As long as EUR/USD stays above the 1.1500 support level, the euro may stage a bounce, limiting further downside.
Traders will watch for confirmation of the dollar's weakness before positioning for euro gains.
Source: FXStreet Forex News