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EUR/USD Drops Further Despite Poor Employment Reports

January 7, 2011 by

EUR/USD continued to move down today on fears of debt crisis in Europe, even though poor employment reports could have weakened the dollar. Unemployment rate showed positive change despite increasing jobless claims and lower-than-expected non-farm payrolls. EUR/USD is now trading near 1.2930.

Nonfarm payrolls increased by 103k in December, compared to the expected change by 159k. November figure was revised upwardly from 39k to 71k. Unemployment rate dropped from 9.8% to 9.4%, while it was expected to decline only slightly ti 9.7%.

Consumer credit rose $1.3 billion, while forecasts promised a very small change by $0.1 billion. Previous reading was revised considerably from $3.4 billion to $7.0 billion.

Yesterday, a report on initial jobless claims was released, showing an increase from 391k to 409k last week.

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

2 Responses to “EUR/USD Drops Further Despite Poor Employment Reports”

  1. Simon Brown

    I think EUR/USD will continue to grind lower. Rates in brief popped for the topside on word from your SNB that they had used simply no fresh action about Colonial debt, however like several the other rallies nowadays, that one was quickly offered into. Thanks.

    Reply

  2. David Antonio

    I would agree with Simon although it may still turn around but then again we have something to watch out for

    Reply

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