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NFP Grow Beyond Expectations, EUR/USD Sinks

May 2, 2014 by

EUR/USD slumped today as growth of nonfarm payrolls came out much bigger than Forex market participants have counted on. Factory orders disappointed somewhat, but this did not help the currency pair to rebound.

US nonfarm payrolls increased by 288k in April, exceeding traders’ expectations of 216k by a wide margin. The February growth was revised positively from 192k to 203k. What is more, the unemployment rate dropped by 0.4 percentage point to 6.3% instead of falling by just 0.1 percentage point as was predicted by experts. (Event A on the chart.)

Factory orders grew 1.1% in March, while analysts have expected the same rate of growth as in February — 1.5%. (Event B on the chart.)

EUR/USD-2014-05-02

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