EUR/USD Reverses Decline Despite Amazing Nonfarm Payrolls

EUR/USD edged up today, erasing yesterday’s losses. It was a big surprise as US nonfarm payrolls were amazingly good and should have driven the currency pair further down. Market analysts explain such behavior by the unexpected drop of average hourly earnings that spoiled otherwise stellar employment data.
Nonfarm payrolls grew by 252k in December, exceeding optimistic analysts’ projections of 241k. Moreover, the November value was revised from the already huge figure of 321k to mind-blowing 353k. Unemployment rate fell from 5.8% to 5.6%, below the predicted level of 5.7%. (Event A on the chart.)
Wholesale inventories expanded 0.8% in November. The increase was bigger than the median forecast of 0.4% and the previous month’s revised growth of 0.6%. (Event B on the chart.)


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