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EUR/USD at Monthly Low on Nonfarm Payrolls

May 2, 2008 by

EUR/USD broke down through 1.5400 mark today and reached the minimum level since the 24th of March as the employment fundamentals showed some improvement compared to the March results. Dollar managed to strengthen also against pound and yen even with objectively bad macroeconomic results.

Nonfarm payrolls — one of the main indicators of the U.S. economy’s health decreased 20k in April. That’s a lot better than the 80k drop in March and 75k drop that was forecasted for April. Still, the negative reading in payrolls is a clear sign of the recession danger. Unemployment rate was reported at 5% — below 5.1% in March and 5.2% expected for this month, but that indicator usually isn’t very accurate.

Factory orders jumped up significantly in March — they rose 1.4%, after a 1.3% decrease in February.

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