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EUR/USD Rises Despite Extremely Good US NFP

March 6, 2020 by

EUR/USD managed to gain today despite extremely positive US nonfarm payrolls. All parts of the employment report were good, and most other US economic releases were also positive today. But that did not prevent the currency pair from rising.

Nonfarm payrolls climbed by 273k in February, exactly the same as in January (revised up from 225k). That was a far bigger increase than 175k predicted by analysts. Unemployment rate fell unexpectedly from 3.6% to 3.5%. Average hourly earnings rose by 0.3%, matching forecasts, after increasing by 0.2% in the previous month. (Event A on the chart.)

Trade balance deficit shrank to $45.3 billion in January from $48.6 billion in December. Analysts had predicted a smaller decrease to $46.3 billion. (Event A on the chart.)

Wholesale inventories fell by 0.4% in January, while experts were expecting the same 0.2% rate of decline as in December. (Event B on the chart.)

Consumer credit rose by $12.0 billion in January, trailing market expectations of a $16.6 billion increase. The December increase got a negative revision from $22.0 billion to $20.2 billion. (Event C on the chart.)

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

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