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EUR/USD Erases Losses as US Nonfarm Payrolls Below Forecast

May 4, 2012 by

EUR/USD was slowly falling today, but erased its losses in one big jump as the rate of US nonfarm payrolls growth was much smaller than anticipated by analysts. The payrolls were unusually close to the ADP employment report, adding to speculations that the previous fast employment growth was caused by warm winter and is going to slow. The currency pair was flat after the report, but currently attempts to resume its decline. For now, it was unable to do so.

Nonfarm payrolls rose by 115k in April. The reading was close to the unrevised March figure of 120k, but rather small compared to the revised 154k. It is even smaller compared to the traders’ expectations of 173k. Still, unemployment rate managed to fall a little from 8.2% to 8.1%. (Event A on the chart.)

EUR/USD for 2012-05-04

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