EUR/USD Lower After Upbeat US Data

The US dollar surged after second consecutive NFO above +250K. The EUR/USD was trading at 1.1235 before the news and immediately retreated to lower levels reaching 1.1046. The pair recovered slightly this morning and is now trading at 1.1097. However, with the latest report market participants are again anticipating a rate raise which may further depreciate the pair.

With the latest report it became clear that Job growth is above expectations, driving investors to the US economy. The unemployment rate stays unchanged at 4.9%.

Here is the data released on Friday:

- USD Unemployment Rate (JUL): 4.9% versus 4.8% expected, from 4.9%.

- USD Change in Non-farm Payrolls (JUL): +255K versus +180K expected, from +287K.

- USD Labor Force Participation Rate (JUL): 65.4% versus 65.5% previously.

- USD Average Hourly Earnings (JUL): 2.6% versus 2.6% expected, from 2.6% (y/y)

Chart: EUR/USD H4