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EUR/USD Erases Losses After NFP Show Disappointing Wage Growth

December 9, 2017 by

EUR/USD was attempting to extend its decline on Friday but bounced back to the opening level after the release of US nonfarm payroll. While employment growth was solid and even beat expectations, wage inflation missed expectations, even though it accelerated.

Nonfarm payrolls rose by 228k in November, beating the common expectations of 198k. The October increase was revised down from 261k to 244k. Unemployment rate stayed at 4.1% as expected. Average hourly earnings rose by 0.2%, missing the consensus forecast of a 0.3% growth. What is more, the previous month’s reading was revised from no change to a decline by 0.1%. (Event A on the chart.)

Preliminary reading of Michigan Sentiment Index showed a drop from 98.5 in November to 96.8 in December instead of an increase to 99.0 predicted by analysts. (Event B on the chart.)

Wholesale inventories dropped by 0.5% in October, while analysts had expected the same 0.4% drop as in September. (Event B on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

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