EUR/USD Volatility trading before NFP

Market Updates

The US Dollar extended its rally against the Euro yesterday after stronger than expected ISM Manufacturing data. This data is an indicator of economic activity; the forecast had been for 48.5 while the actual number was 49.5.

To add to the bullish cause for the US Dollar the Euro area Consumer Price Index, a measure of inflationary pressure, was released Monday morning at -0.2%, which was lower than expected at 0.0% and lower still than last month’s data at 0.3%.

The reduced inflationary pressure in the Euro area and increase in economic activity in the US has helped the EURUSD fall from 1.10161 on Monday morning to current levels below 1.09000.

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