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NFP Causes EUR/USD Confusion and Brief Rally

March 9, 2018 by

The US dollar had been strengthening against the euro during today’s trading session right until the monthly employment report was released by the US Bureau of Labor Statistics. A set of mixed data caused the turmoil in the currency market and created a notable spike in the EUR/USD chart. Then, the currency pair switched to a rally, though a short-lived one.

Nonfarm payrolls added astonishing 313k jobs in February. Not only it was much better than the market’s expectations of 205k, the last month’s 200k value was revised up to 238k. At the same time, the unemployment rate ticked up from 4.0% to 4.1%. While wages grew slower than expected with average hourly earnings raising by 0.1% instead of the expected 0.2% and below the last month’s increase of 0.3%. (Event A on the chart.)

Yesterday, a report from the Department of Labor has shown 231k initial jobless claims filed during the week ending on March 3. The number was higher than both the previous week’s 210k and the median forecast of 220k. (Not shown on the chart.)

EUR/USD as of 2018-03-09

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