Dollar Tumbles on Poor Employment Data

The reports about conditions on the US job market sent the dollar tumbling down as claims for jobless benefits increased, instead of decreasing as was expected, and nonfarm payrolls dropped a lot more than was forecast. The report about consumer credit showed better valued than Forex traders expected, but it was released too late today to have significant impact on markets. EUR/USD is trading now at about 1.3282.
Nonfarm payrolls declined by 131k in July, following the drop by 221k (revised up from 125k) in June. The analysts previously estimated decrease by 63k. The unemployment rate was unchanged at 9.5 percent.
Consumer credit in the US dropped by $1.3 billion in June after declining by $5.3 billion in May. The expected change of credit valued was $5.2 billion.
Yesterday, a report on initial jobless claims was released, showing from 460k to 479k last week.

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

Leave a Reply

Your email address will not be published. Required fields are marked *