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Ultra-Surprise in Nonfarm Payrolls Pushes EUR/USD Down

December 4, 2009 by

EUR/USD is currently showing the biggest daily drop since March 27 this year as the nonfarm payrolls report positively surprised the dollar bulls, giving a lot of confidence in the U.S. currency. The higher dollar sent the commodity and equity markets in the red zone despite the promising fundamental conditions. EUR/USD is now trading near 1.4833 after reaching as high as 1.5090 intraday.

Nonfarm payrolls were reported at -11k in November, following -111k in October (revised considerably from -190k). The median analysts’ forecast for this indicator was at -125k. As you see, the market participants didn’t expect such a drop in the unemployment decline rate. The latest report suggests that the new nonfarm workplaces may start to appear in few months. The overall unemployment rate dropped from 10.2% to 10.0%, while the expectation was that it remains at 10.2%.

U.S. factory orders rose by 0.6% in October, following 1.6% growth in September (revised positively from 0.9%). The consensus forecast for the latest release was at 0%.

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

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