EUR/USD consolidates daily rally below 1.1900, looks to post strong weekly gains

EUR/USD remains on track to close sixth straight day in the positive territory.
US Dollar Index steadies above 92.00 in the American session.
August jobs report showed a smaller-than-expected increase in NFP.

The EUR/USD pair jumped to its highest level since late June at 1.1909 on Friday after the greenback came under strong selling pressure during the American trading hours. However, the pair edged lower ahead of the weekend and was last seen posting small daily gains at 1.1885. On a weekly basis, the pair is up nearly 0.7%.

USD selloff continues after US jobs report

The data published by the US Bureau of Labor Statistics showed on Friday that Nonfarm Payrolls in the US increased by 235,000 in August. With this print missing analysts’ estimate of 750,000 by a wide margin, the USD weakened against its rivals. The US Dollar Index (DXY) dropped to a monthly low of 91.95 and allowed EUR/USD to shoot higher.

Nevertheless, a more-than-3% increase seen in the benchmark 10-year US Treasury bond yield helped the USD limit its losses and the DXY is currently losing 0.1% on the day at 92.10.

Commenting on the US jobs report, “disappointing, but not a disaster – August’s Nonfarm Payrolls figures have badly disappointed, yet mostly related to the Delta covid variant,” said FXStreet analyst Yohay Elam. “That shall pass. In the meantime, the data is good news for stocks, temporarily good news for the dollar.”

NFP Quick Analysis: Horrible data has silver linings for stocks, why dollar could rise, then fall.