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EUR/USD Surges on Talks About Interest Rate Hike from ECB

March 10, 2017 by

EUR/USD rallied today, touching the highest level in a month, despite solid growth of US employment. The reason for the currency pair’s gains was the report about discussion among European Central Bank members of possibility of an interest rate hike before the bond-buying program ends. Additionally, US employment data was not entirely positive as wage growth trailed analysts’ predictions.

Nonfarm payrolls increased by 235k in February, exceeding analysts’ expectations of 196k. On top of that, the previous month’s gain was revised up from 227k to 238k. Unemployment rate slipped a bit from 4.8% to 4.7%, matching forecasts. Average hourly earnings increased by 0.2%, the same as in the previous month (revised from 0.1%) and a bit less than experts had promised — 0.3%. (Event A on the chart.)

Treasury budget logged a deficit of $192.0 billion in February after posting a surplus of $51.3 in January. The actual value was bigger than the deficit of $175.0 billion forecast by specialists. (Event B on the chart.)

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

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