US nonfarm payrolls, which were delayed because of the US government shutdown, were expected to show robust growth of employment. Instead, they significantly disappointed Forex traders, leading to a surge of EUR/USD to the highest since November 2011. Other reports were mixed, but not particularly supportive for the dollar either.
Nonfarm payrolls sank from 193k (upwardly revised from 169k) in August to 148k in September, frustrating analysts who have expected growth by 182k. At the same time, the unemployment rate unexpectedly fell by 0.1 percentage point to 7.2%. (Event A on the chart.)
Net foreign purchases fell by $8.9 billion in August. In July, the purchases rose by $31.0 billion and analysts have thought that the rate of growth would remain the same in August. (Event B on the chart.)
Richmond Fed manufacturing index unexpectedly ticked up from 0 in September to 1 in October. (Event C on the chart.)
Construction spending rose 0.6% in August from July, when it grew 1.4% (revised positively from 0.6%). The increase was in line with forecasts. (Event C on the chart.)
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