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EUR/USD Loses Ground as Payrolls Provide Pleasant Surprise

May 6, 2011 by

EUR/USD experienced a sharp downfall today after the US nonfarm payrolls showed that employment growth rose accelerated, instead of slowing according to forecast. On the other hand, unemployment also increased. US consumers increased their borrowing in March, suggesting that Americans feel optimism for their economic future. EUR/USD currently trades near 1.4347.

US nonfarm payrolls increased by 244k in April, compared to 221k (revised from 216k) in March. The report pleasantly surprised traders, who expected slower growth by 185k. Unemployment rate rose to 9.0%, despite the positive employment data, while it was expected to remain at the previous level of 8.8%. (Event A on the chart.)

Consumer credit rose by $6.0 billion in March from February, beating the forecast that promised $5.2 billion increase. Between January and February credit increased by $7.6 billion. (Event B on the chart.)

EURUSD for 2011-05-06

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