EUR/USD drops below 1.3100 after NFP

EUR/USD rose sharply to the 1.3205 area after the non-farm payrolls report only to quickly fall to fresh daily lows beneath 1.3100 as investors continue to digest the surprising outcome.

EUR/USD was rejected from levels above 1.3200 and staged a 130-pip slide before finding support at the 1.3075 area. At time of writing, EUR/USD is quoting around 1.3080, 0.5% below its opening price.

“Trading in range, there is no strong definitions so either a break above 1.3145 or below 1.3070 will be necessary to see a clearer trend in the pair”, said Valeria Bednarik, chief analyst at FXstreet.com.

The US economy added 243,000 jobs in January, well above market expectations of 150,000, while the unemployment rate fell to 8.3% from 8.5% the previous month. In December, the increase in payrolls was revised up to 203,000 from an initial report of 200,000. November payrolls were upwardly revised to 157,000 from 100,000.

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