Euro Rebounds on the back of Demand for EUR/JPY

Traditionally, the EUR/USD is known as the anti-dollar meaning that it rallies on weak US data and sells off on strong data. In recent weeks however, that has not been the case. For example, today?s US non-farm payrolls number should have sent the EUR/USD tumbling and it did, but only for a brief moment before the currency pair recuperated all of its losses.

Demand for EUR/JPY was to blame as traders were transfixed with taking the pair higher and higher. Virtually no retracement has been seen today in the currency?s pair?s near vertical rally. Both German factory orders and the French trade balance were strong, but that added little to the Euro rally. Next week only second tier economic data is due for release. Instead, the market will be focusing on the July monthly report and comments from ECB officials.