• EUR/USD now reverses initial gains and revisits 1.0850.
• US Non-farm Payrolls surprised (largely) to the upside in January.
• The unemployment rate dropped to 3.4%.

EUR/USD comes under further downside pressure and rapidly gives away the initial optimism, returning to the mid-1.0800s in the wake of another stellar prints from the US jobs report on Friday.

EUR/USD: Gains appear limited near 1.1030 so far

EUR/USD picks up extra selling pressure after the release of the Nonfarm Payrolls showed the US economy added 517K jobs during January, largely surpassing initial estimates for a gain of 185K jobs. In addition, the December reading was also revised up to 260K (from 223K).

Further data saw the Unemployment Rate ticking lower to 3.4% and the key Average Hourly Earnings – a proxy for inflation via wages – rise 0.3% MoM and 4.4% from a year earlier. Additionally, the Participation Rate increased a tad to 62.4% (from 62.3).

Later in the session, the attention will be on the release of the ISM Non-Manufacturing.