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EUR/USD Reverses Losses After NFP Misses Expectations

January 10, 2020 by

EUR/USD fell today but has rebounded by now. The reason for the bounce was the miss of US nonfarm payrolls. The currency pair was unsure where to go at first, jumping initially but retreating almost immediately afterward. But ultimately, the pair decided to go higher.

Nonfarm payrolls rose by 145k in December, missing the market consensus of a 162k increase. On top of that, the previous month’s gain of 266k was revised lower, to 256k. Unemployment rate remained at 3.5%, matching expectations. Average hourly earnings rose by 0.1%. That is compared with the median forecast of 0.3% and the November gain of 0.3% as well (revised up from 0.2%). (Event A on the chart.)

Wholesale inventories fell by 0.1% in November. Market participants were expecting no change, the same as in October. (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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