- EUR/USD fell sharply on the initial reaction to the US jobs report.
- Nonfarm payrolls in the United States increased by 263,000 in September.
- The pair remains on track to end the week little changed.
The EUR/USD managed to erase much of its daily losses but lost its recovery momentum before reaching 0.9800. At the time of writing, the pair lost 0.1% on the day, trading at 0.9780. Following the latest price action, EUR/USD remains on track to finish the week flat.
The dollar benefits from the positive NFP data
Earlier in the day, data released by the US Bureau of Labor Statistics revealed that nonfarm payrolls increased by 263,000 in September. This data exceeded market expectations for a rise of 250,000 and helped the dollar outperform its rivals. In addition, the Unemployment Rate decreased to 3.5% from 3.7%.
With the initial reaction, the Dollar Index (DXY) jumped to a daily high of 112.82 and forced EUR/USD to fall to a weekly low of 0.9726. However, weekend flows and profit taking appear to be capping dollar gains, with DXY pulling back below 112.50 by London closing time.
Meanwhile, Wall Street’s major indices are trading in negative territory, making it difficult for EUR/USD to rise. At press time, the Nasdaq Composite and SP500 indices lost more than 2% on the day.
Technical levels to consider
Source: Fx Street
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