EUR/USD slumped today as US nonfarm payrolls rose more than expected last month, reducing probability of a next round of quantitative easing. As for bad news, the deficit of trade balance increased, while it was expected to shrink.
Nonfarm payrolls rose by 227k jobs in February. That’s a smaller growth than the January increase by 284k (revised upwardly from 243k), but still better than analysts’ predictions of 209k. Unemployment rate remained at 8.3% as was expected by traders. (Event A on the chart.)
US trade balance deficit increased to $52.6 billion from $50.4 billion in December. The report frustrated analysts who expected a decrease to $48.9 billion. (Event A on the chart.)
Wholesale inventories rose 0.4% in January from December. That’s a slower rate of growth than the predicted 0.7% and the December increase by 1.1%. (Event B on the chart.)
If you have any comments on the recent EUR/USD action, please reply using the form below.
