Nonfarm Payrolls Smaller than Expected, EUR/USD Climbs

EUR/USD surged today as nonfarm payrolls came out noticeably smaller than was expected by Forex market participants. The report eased concerns about possible tampering of monetary stimulus by the Federal Reserve.
Nonfarm payrolls increased by 162k in July, compared to the median forecast of 184k. Moreover, the June’s increase was revised negatively from 195k to 188k. At the same time, the unemployment rate edged down by 0.2 percentage point to 7.4%, below the analysts’ prediction of 7.5%. (Event A on the chart.)
Personal income grew 0.3% and spending rose 0.5% in June. The consensus forecast for both indicators was at 0.5%. Income was up by 0.2% and expenditure by 0.3% in May. Both was revised negatively by 0.1 percentage point. (Event A on the chart.)
Factory orders advanced 1.5% in June, trailing the forecast of 2.3% and the May’s 3.0% growth (revised up from 2.1%). (Event B on the chart.)


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Your email address will not be published.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 *

nine + 1 =