EUR/USD losses gains despite weaker than expected nonfarm payrolls
InvestingOnline.com
3/08/2018, 14:02The euro is currently trading negative following the US employment report. The EUR/USD is giving up its previous gains on the day, and it is now trading at daily lows.
The United States reported 157K new nonfarm payrolls created on July, well below of market expectations of 190K, and June reading of 248K new jobs. The Bureau of Labor Statistics reported today that “employment increased in
professional and business services, in manufacturing, and in health care and social assistance.”
The unemployment rate declined to 3.9% in July from 4.0%, close to its lowest level in nearly 50 years. “The number of unemployed persons declined by 284,000 to 6.3 million in July. Both measures were down over the year, by 0.4 percentage point and 676,000, respectively.”
Labor force participation stayed unchanged at 62.9% between June and July. Expectations were for an increase in the participation rate to 63.0%. Weekly average hours stayed at 34.5, as expected, but below 34.5 performed in June.
Average hourly earnings rose 2.7% YoY in July, as expected and the same growth rate of June. “In July, average hourly earnings for all employees on private nonfarm payrolls rose by 7 cents to $27.05. Over the year, average hourly earnings have increased by 71 cents, or 2.7 percent. Average hourly earnings of private-sector production and nonsupervisory employees increased by 3 cents to $22.65 in July.”
EUR/USD falls to July-August lows, but the pair got a bounce
EURUSD daily chart August 3
In forex, Euro fell from intra-day highs at 1.1610 following the US employment report to trade as low as 1.1560 against the US dollar, its lowest level since June 29.
The EUR/USD is currently trading 0.07% negative on the day at 1.1575. Technically, the EUR/USD is heading to the south, MACD is pointing for more losses with the RSI is still in overbought conditions but fading. It seems traders are selling positions on profit trading mode ahead of the weekend.
