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EUR/USD Ends Trading Flat After Surge on NFP

May 6, 2016 (Last updated on May 7, 2016) by

The major event today was the release of nonfarm payrolls, which turned out to be disappointing somewhat due the smaller-than-expected increase of employment. As one could expect, EUR/USD surged after the release. Yet not everything was bad in the report, allowing the dollar to slowly regain its ground. And as a result, the currency pair ended the trading session basically at the same level it had opened.

Nonfarm payrolls rose by 160k in April, trailing the analysts’ median forecast of 203k. The previous month’s increase was revised down from 215k to 208k. Unemployment rate remained at 5.0%. Average hourly earnings rose 0.3%, matching economists’ predictions. (Event A on the chart.)

Consumer credit rose by $29.6 billion in March, exceeding the economists’ consensus estimate of $16.1 billion. The February’s reading got a negative revision from $17.3 billion to $14.2 billion. (Event B on the chart.)

EUR/USD as of 2016-05-07

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