Forex: EUR/USD extends gains before weekly close

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FXstreet.com (Barcelona) - Market participants took the trouble of testing the 1.3000 psychological level as support just ahead of the release of the US NFP data for September. More important than a report slightly above the 113k consensus, being at 114k in September, the US nonfarm payrolls in August were revised much higher, from 96k to 143k, which boosted the risk sentiment of the NY session and provided scope for a rally of the EUR/USD.

The pair has already gained +0.43% on the day ( GMT ) by reaching 1.3070 high and the market is still looking to the upside ahead of the weekend and next Monday's Eurogroup meeting that might bring news of the Euro crisis resolution and still a possible Spanish aid request that would start the ECB's OMT programme.

"Draghi repeated several times that the activation of the OMT was now up to the governments", wrote Commerzbank analyst Thu Lan Nguyen, stating that attention has now shifted to Spain and Italy, which governments are still reluctant to ask for help, giving the EUR-USD recovery feet of clay, with resistance at 1.3150 and much scope on the downside towards 1.2800.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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