- January US labor market data disappoint.
- The dollar falls on all fronts, Wall Street futures remains at highs for the day.
EUR / USD rose from levels below 1.2000 to 1.2023, after the publication of the January employment report in the United States, marking a new high for the day. The dollar fell on all fronts after the figures that did not show the expected positive surprise.
Employment data not as optimistic as others
Nonfarm payrolls in January increased by 49,000, slightly below expectations. But other recently released labor market indicators had generated optimism for better-than-expected numbers. In turn, revenue rose less than expected.
The dollar fell on all fronts after the figures, pushing EUR / USD higher. Now the pair is snapping on a four-day streak with declines.
The dollar found some support, avoiding a further decline due to higher Treasury yields. The 10-year rate reached 1.18%, the highest level since March, although the rise later moderated.
From a technical point of view, the EUR / USD is still showing a bearish bias, pBut if confirmed, Friday’s rebound could point to a consolidation ahead. Strong resistances can be located at 1.2050 / 55 and then 1.2105 / 10 (convergence of the 20- and 55-day moving average).