EUR/USD surged today as US nonfarm payrolls were better than expected. The good data overshadowed yesterday’s disappointment from the European Central Bank. The payrolls followed the good figure from the ADP employment report earlier this week, which was misleading last month, but this time gave a good indication of employment in the United States. The US service industries also looked good. As for bad news, the unemployment rate was a little higher despite the good payrolls.
Nonfarm payrolls came out today, showing an increase by 163k in July, being above the forecast of 101k. There was a bit of bad news as the June increase was revised from 80k to 64k. Despite the robust employment growth, the unemployment rate rose by 0.1 percentage point to 8.3%. (Event A on the chart.)
ISM services PMI rose to 52.6% in July, while it was expected to stay unchanged from the month before at 52.1%. (Event B on the chart.)
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