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NFP Exceeds Expectations, EUR/USD Slumps to New Low

October 3, 2014 by

EUR/USD sank today, reaching a new multi-year low, after US nonfarm payrolls turned out to be better than even optimistic expectations. While positive data was priced in, the actual report still managed to surprise the Forex market, resulting in huge gains for the dollar.

Nonfarm payrolls demonstrated growth by 248k in September, which was noticeably bigger than the predicted 216k. Moreover, the meager August increase of 142k was revised upward to 180k. On top of that, the unemployment rate slipped from 6.1% to 5.9% even though most analysts expected no change. (Event A on the chart.)

US trade balance demonstrated a deficit of $40.1 billion in August, down from $40.3 billion in July. Experts anticipated an increase to $41.0 billion. (Event A on the chart.)

ISM services PMI fell from 59.6% in August to 58.6% in September, matching the consensus forecast. (Event B on the chart.)

EUR/USD for 2014-10-03

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