EUR/USD rebounds to 1.2160 on poor Payrolls

• EUR/USD bounces off daily lows and tests 1.2150.
• US Non-farm Payrolls rose by 559K jobs in May.
• The unemployment rate eased to 5.8% (from 6.1%).

The buying interest around the single currency regains some composure and pushes EUR/USD back to the area of 1.2160 in the wake of US NFP.

EUR/USD jumps to daily highs post-NFP

EUR/USD reverses the initial pullback on Friday after the US economy created 559K jobs during May, missing consensus for a gain of 650K jobs. The April’s reading was revised to a gain of 278K (from 266K).

Further data showed the jobless rate dropped to 5.8% (from 6.1%) and the critical Average Hourly Earnings – a proxy for inflation via wages – rose 0.5% MoM and expanded 2.0% over the last twelve months. Another key gauge, the Participation Rate, ticked higher to 61.6%.

Next on tap will be the April’s Factory Orders.

EUR/USD levels to watch

So far, spot is gaining 0.21% at 1.2151 and faces the next hurdle at 1.2266 (monthly high May 25) followed by 1.2300 (round level) and finally 1.2349 (2021 high Jan.6). On the downside, a break below 1.2103 (weekly low Jun.4) would target 1.2064 (23.6% Fibo retracement of the November-January rally) en route to 1.2051 (weekly low May 13).