EUR USD Steadies, Weakening Economies Problem to Traders

Weak signs from the eurozone and American economies are causing the EUR/USD trading pair to steady this Monday’s sessions. The pair is heavily weighed by the lackluster results from last week’s reports.

In fact, both currencies’ indices are struggling to gain altitude this Monday. The silence in the market today is not helping the pair gain traction.

The EUR/USD exchange rate is flatlining as of writing. The pair only inched up by 0.02% or 0.0002 points in trading sessions. The EUR/USD pair currently trades for $1.1122 but has reached ranges between $1.1113 and $1.1132 this Monday.

The US dollar index or DXY edged up by 0.06% or 0.06 points. While the US dollar index futures for March 20 or DXH0 rose by 0.09% or 0.087 points in today’s trading.

On the other hand, the euro contract failed to record any movements as of writing. However, the contract is still seen inching and down by 0.02% and eventually turning 0.00% during the day.

Red Results

Last Friday, both the single currency and the greenback received bad news from their respective economies. The US nonfarm payrolls rolled out weaker than expected figures for the last month of 2019 on its last report.

The nonfarm payroll for December contracted from 256K to 145K, catching the market off guard as they were expecting a 164k contraction. Meanwhile, the private nonfarm payroll dropped from 243K to 139K, further below projections of 152K turnout.

The unemployment rate of the United States, however, remained unmoved for December at 3.5%.

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Another factor for the steadiness of the EUR/USD is the dull figures from Berlin’s economy. The German-heavy single currency is held back by the weakening economy of the bloc’s beloved economy.

Germany’s trade balance for November contracted to €18.3 billion from €20.4 billion, plunging further from expectations of €20.0 billion. The bloc’s unemployment also remained unmoved at 7.5% for November according to Eurostat.