Friday, as expected, showed us some real tough action in Forex EUR/USD pair with it hopping high to 1.3800. The first Fridays of the month are often like that — you have an almost flat week of dull trading and then some important news (employment market) come and the whole situation changes fast and completely unexpectedly.
Nonfarm payrolls in July 2007 dropped 34k and came out at 92k level — opposed to 135k expected showing some clear problem which could possible exist in U.S. employment market and thus in the whole economy. Unemployment rate rose to 4.6% from the previous and expected 4.5%, while average hourly earning rose by 0.3% — just as expected.
ISM Services Index was also released today — and it came out to be quite disappointing for the U.S. dollar bulls too — it dropped down from 60.7 to 55.8, while analysts expected at least 59.0 level.