EUR/USD dropped today, falling for the third consecutive session, after US nonfarm payrolls came out worse than expected. The poor data increases probability of QE3 from the Federal Reserve, which would weaken the dollar. For now, though, the report sparked fear among investors that led to rising demand for safe assets, including the US currency.
Nonfarm payrolls demonstrated growth by 80k in June, near the 77k rate of growth in May, which was revised upwardly from 69k. The change was below the market expectations of 97k. Unemployment rate stayed at 8.2%. (Event A on the chart.)
If you have any comments on the recent EUR/USD action, please reply using the form below.