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EUR/USD Sinks After NFP Exceeds Expectations

February 7, 2020 (Last updated on February 9, 2020) by

EUR/USD dropped today after the release of US nonfarm payrolls. The currency pair attempted to rally after the initial decline but resumed the drop later. While employment growth exceeded expectations by a wide margin, the unemployment rate and wage inflation failed to meet predictions. But markets paid more attention to the positive part of the report.

Nonfarm payrolls surged by 225k in January. That was a far bigger increase than 163k predicted by analysts and 147k registered in the previous month. Unemployment rate rose unexpectedly from 3.5% to 3.6%. Average hourly earnings rose by 0.2% — a bigger increase than 0.1% logged in December but smaller than 0.3% predicted by experts.

Wholesales inventories decreased by 0.2% in December, while experts were expecting the same 0.1% rate of fall as in the preceding month.

Consumer credit rose by $22.0 billion in December, exceeding the average forecast of $15.2 billion and $11.9 billion logged in November.

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