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EUR/USD Weakens After US Unemployment Rate Drops, Still Above Opening

December 2, 2011 by

EUR/USD continued to rise today, but the currency pair relinquished part of its gains after the US unemployment rate unexpectedly dropped last month. The positive market sentiment still supports the euro, yet again traders talk that the European leaders need to perform some visible steps to defeat the region’s crisis and such talks may wear the euro down.

US nonfarm payrolls rose 120k in November, matching the forecast value of 126k. The October value was revised from 80k to 100k. Unemployment rate provided a pleasant surprise, falling to 8.6% from 9.0%. (Event A on the chart.)

EUR/USD for 2011-12-02

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

2 Responses to “EUR/USD Weakens After US Unemployment Rate Drops, Still Above Opening”

  1. Miguel

    Do you think that the sudden rise in the EurUsd pairing is due to the liquidity injected by the IMF and ECB to prevent a credit crunch. Once those dollars dry up do you think that we will once again see the market turn strongly bearish?

    Reply

    admin Reply:

    If they don’t fix something fundamentally, then yes. When the new portion of money help runs out, there will be a decline until something new is offered.

    Reply

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