EUR/USD rises to session high as dollar broadly weakens.
The US trade deficit jumped 43.1% to a six-and-a-half year high of $51.4 billion. It was much higher than the $41.2 billion consensus estimate and sent the US dollar lower across the board.
EUR/USD jumped to a session high of 1.1158 from 1.1120. The Friday afternoon high of 1.1191 is the next level of technical resistance.
The US dollar still remains slightly higher on the day against the yen at 120.25 but skidded lower from a session high of 120.50 just before the data. The pair is now trying to hang onto a 5-session winning streak.
Perhaps the biggest surprise is that the US dollar is weaker against the Canadian dollar. At the same time as the US data, Canada reported a record trade deficit. Initially the pair shot to 1.2120 but is now at a session low at 1.2064. A large part of the buying is due to oil hitting $60, no doubt.
EURUSD intraday
Looking ahead, the market will focus on the results of the ISM data.
