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EUR/USD Rallies Ahead of NFP

May 7, 2020 by

EUR/USD rose on Thursday. Some analysts argued that the rally was a result of profit-taking after the recent rise of the greenback. Others speculated that the recent poor US employment reports made investors worried about how bad Friday’s nonfarm payrolls will be. As for today’s US data, jobless claims were bad, causing the currency pair to spike. But the pair pulled back quickly afterward and resumed its upward movement after some time.

Initial jobless claims were at the seasonally adjusted level of 3169k last week. While it was a decrease from the previous week’s revised level of 3,846k (3,839k before the revision), the actual value was above market expectations of 3,000k. (Event A on the chart.)

Nonfarm productivity fell by 2.5% in Q1 2020, less than half of the forecast drop of 5.4%. The previous quarter’s increase got a revision from 1.4% to 1.2%. (Event A on the chart.)

Consumer credit fell by $12.1 billion in March instead of rising by $14.9 billion as analysts had predicted. The previous month’s increase got a negative revision from $22.3 billion to $20.0 billion. (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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