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EUR/USD Extends Rally Despite Positive NFP

November 6, 2020 by

EUR/USD continued to rise today even though non-farm payrolls turned out even better than optimistic forecasts. But it looks like the same factors that were driving the market previously continued to affect it on Friday, helping the currency pair to extend its rally.

Nonfarm payrolls rose by 638k in October, exceeding the median forecast of a 595k increase. On top of that, the previous month’s gain got a positive revision from 661k to 672k. Unemployment rate fell from 7.9% to 6.9%, whereas analysts had predicted just a mild fall to 7.7%. Average hourly earnings were the only disappointing indicator in the report, rising by just 0.1% increase, missing the analysts’ projections of a 0.2%. Furthermore, the September reading got a negative revision from 0.1% to 0.0% (no change). (Event A on the chart.)

Wholesale inventories rose by 0.4% in September, the same as in the preceding month. Experts were anticipating a 0.1% drop. (Event B on the chart.)

Consumer credit rose by $16.2 billion in September, exceeding the median forecast of a $7.9 billion increase. August’s decline got a revision from $7.2 billion to $6.9 billion. (Event C on the chart.)

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