EUR/USD set to correct some of Friday's gains

EUR/USD has been in retreat from Friday's NFP-induced levels. Time to sell? US Treasury Secretary Yellen's embrace of higher inflation is supporting the dollar, outweighing Nonfarm Payrolls' boost, FXStreet’s Analyst Yohay Elam briefs.

EUR/USD may come under additional pressure

“Higher rates would be a ‘plus’ for the US – these comments by Treasury Secretary Janet Yellen are already supporting the dollar. More may be in store.”

“Higher borrowing costs in response to more robust inflation support the greenback and counter the blow that the currency received from Friday's Nonfarm Payrolls. The American economy gained only 559,000 jobs in May, below 664,000 expected and on top of a disappointing increase in April.”

“Business sentiment figures have been upbeat and Monday's release of the Sentix Investor Confidence will likely support that view. However, hopes for a vaccine-led recovery are already priced into the euro.” 

“Some support awaits at 1.2130, a swing low from late May, followed by 1.2105, a clear separator of ranges that is the current monthly low.”

“Some resistance is at 1.2185, Friday's peak, followed by 1.220 and 1.2155, which held EUR/USD down in the past week.”