The euro bounces sharply as the non -agricultural payrolls of the US disappoint and the fence bets increase

  • The EUR/USD jumps more than 150 pips, rising from 1,1391 to 1,1556 after the publication of the NFP.
  • The US economy added only 73,000 jobs in July, well below the 110,000 forecast.
  • The unemployment rate rises to 4.2%, in line with expectations.

The euro (EUR) reverses sharply against the US dollar (USD) on Friday after the Julio Non -Agricultural Payroll (NFP) report surprised down, surprising markets. The pair had been under pressure throughout the week, operating defensively while the US dollar remained firm in the face of robust economic data and an aggressive perspective of the Federal Reserve (Fed).

The EUR/USD shoots almost 150 pips from a minimum of several weeks after the publication of the NFP report. At the time of writing, the PAR is negotiated around 1,1556 during the American negotiation hours, an increase of approximately 1.20% in the day, after having fallen to an intra -estate of 1,1391. The strong rebound is produced as the disappointing employment data causes a generalized sale of the dollar, raising to the euro from its lower levels since mid -June.

The American dollar index (DXY), which tracks the value of the dollar against a basket of six main currencies, fell to 99.3 from the maximum of two months of 100.26 reached earlier in the day.

The Julio Non -Agricultural Payroll (NFP) report showed that the US economy added only 73,000 jobs in July, the expectations of 110,000 failing loudly. In addition, the figure of the previous month was reviewed significantly to the decline to only 14,000 from the 147,000 initially reported, indicating a deeper labor slowdown than was previously thought. The unemployment rate rose to 4.2% in July from 4.1% in June, aligning with market expectations. The modest increase reflects the relief of labor market conditions and reinforces the moderate general tone of the employment report.

Salary growth remained stable in July, offering a mixed signal on underlying inflationary pressures. The average hourly profits increased by 0.3% monthly, in line with expectations and above the 0.2% increase in June. In interannual terms, salaries increased by 3.9% year -on -year, slightly above 3.8% and unchanged forecasts compared to previous reading.

After the weakest employment data than expected, market expectations for a rate cut in September were shot at 67.1%, a drastic increase from only 37% earlier in the day, according to the CME Fedwatch tool. However, the recent aggressive comments of the president of the FED, Jerome Powell, can moderate the expectations of an imminent relief.

Looking ahead, attention focuses on the Manufacturing Purchase Management Index (Julio ISM, which is expected to decrease slightly to 49.5 from 49.0 in June.

Euro price today

The lower table shows the percentage of euro change (EUR) compared to the main currencies today. Euro was the strongest currency against the US dollar.

USD EUR GBP JPY CAD Aud NZD CHF
USD -1.08% -0.57% -1.56% -0.49% -0.80% -0.30% -0.81%
EUR 1.08% 0.61% -0.50% 0.65% 0.42% 0.64% 0.32%
GBP 0.57% -0.61% -1.06% 0.05% -0.18% 0.25% -0.27%
JPY 1.56% 0.50% 1.06% 1.12% 0.83% 1.21% 0.80%
CAD 0.49% -0.65% -0.05% -1.12% -0.33% 0.19% -0.31%
Aud 0.80% -0.42% 0.18% -0.83% 0.33% 0.43% 0.05%
NZD 0.30% -0.64% -0.25% -1.21% -0.19% -0.43% -0.41%
CHF 0.81% -0.32% 0.27% -0.80% 0.31% -0.05% 0.41%

The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the euro of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the EUR (base)/USD (quotation).

Source: Fx Street

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