The EUR/USD pair eased from a fresh year high set at 1.1437 after an encouraging US employment report that anyway, was only enough to justify some profit taking of the Yellen-triggered rally in the pair.
The Nonfarm Payroll report showed that the US added 215,000 new jobs in March, while the unemployment rate ticked slightly higher, up to 5.0%. Wages were a positive surprise coming in at 0.3% monthly basis against the 0.2% expected and taking the year-on-year change up to 2.3%. Market´s initial reaction was tepid, but as the US session develops the dollar is broadly higher across the board.
Yellen said on Tuesday that the US central bank should proceed cautiously in raising rates, suggesting rates will remain lower for longer which resulted in a sharp dollar sell-off that persisted until the release of the NFP report, leaving the pair overstretched to the upside. The market however, has little reasons to buy back the greenback, as a rate hike is now out of the picture until September.
(Market News Provided by FXstreet)